This Thursday, the US government denounced the company Live Nation, owner of the Ticketmaster ticket sales portal, with the aim of ending the illegal monopoly that the company has exercised in recent years, the consequences of which both consumers and artists suffer. promoters.
The Justice Department, along with 30 state and district attorneys general, filed a civil antitrust lawsuit in the United States District Court for the Southern District of New York for “monopolization and other unlawful conduct that frustrates competition in the markets.” “.
The lawsuit was announced at a press conference by US Attorney General Merrick Garland, in which he stated that the company’s “exorbitant fees and technological failures” “have been criticized by fans and artists alike” but that the lawsuit It is not motivated by this, but because the company’s practices are “anti-competitive and illegal.”
Through a statement, the company denied these practices and said it was “another victim” of the Biden Administration’s decision to “hand over the application of antitrust laws to a populist impulse” that does not seek to end monopolies, but ” It’s just anti-business.”
A wide demand
The accusations against Live Nation are broad and range from blocking competition to charging exorbitant commissions to consumers, who end up paying gold prices (sometimes several thousand dollars) for tickets to concerts and other shows.
Garland stated that the company “blocks competition and ticket sales by using exclusive sales contracts” that can last more than a decade and also by acquiring its own venues, among other practices.
He further uses these agreements and control of venues to “illegally pressure artists to agree to use his promotional services” and has also “worked strategically and illegally to eliminate the threat of potential rivals emerging in any of his businesses.”
Live Nation controls at least 80 percent of ticket sales at major concert venues; directly manages more than 400 artists; controls more than 60 percent of concert promotions nationwide and owns or controls more than 60 percent of the major amphitheaters in the United States, Garland claims.
Additionally, Ticketmaster imposes an “endless” list of fees on the buyer: ticketing fees, service fees, convenience fees, Platinum fees, master order pricing fees, handling fees, and payment processing fees, among others.
This situation, adds the prosecutor, results in “fans paying more” and “artists having fewer opportunities to play at concerts”, while “smaller promoters are excluded and venues have fewer real options for sales services.” of tickets”.
Taylor Swift, the straw that broke the camel’s back
Live Nation has been under close scrutiny for months, including by the US Congress, especially after the company canceled the public sale of Taylor Swift tickets in November 2022 because there was too much demand and insufficient remaining inventory to meet it.
The company had to respond to the Senate Judiciary Committee to explain what happened, which angered millions of ‘Swifties’, followers of the popular artist, and Swift herself.
Ticketmaster blamed cyber attacks for what happened and made it clear that they do not set ticket prices or decide how many go on sale or when.
Last June, Live Nation pledged to be more transparent with the prices it charges its customers, an apparent response to pressure from Biden, and decided to display the final price of tickets at the beginning of a transaction, rather than at the end. final.
The lawsuit against the company is one of the most important competition cases filed during the Biden Administration and joins others filed against technology giants such as Apple, Amazon and Google.
Specifically, the lawsuit alleges that Live Nation-Ticketmaster violates Section 2 of the Sherman Act, which prohibits conspiracies that unreasonably restrain trade and agreements among competitors to fix prices or wages, rig bids, or allocate customers, workers, or markets.
2024-05-23 18:41:08
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