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Ticketmaster is at the heart of a US antitrust lawsuit against parent company Live Nation


The United States Department of Justice and 30 state attorneys general filed a lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, for alleged monopolistic practices.

Live Nation and Ticketmaster merged in 2010, creating a dominant entertainment machine that controls the majority of ticket sales and venue bookings in the country. But Taylor Swift fansā€™ experience buying tickets for the Eras tour in late 2022 was so horrific that legislators took a closer look at the entertainment giantā€™s control over the industry ā€” the presale was riddled with glitches and hours-long wait times, while the public sale was canceled due to high traffic.

ā€œLive Nation suffocates its competition using a variety of tactics, from acquisitions of smaller regional promoters and venues, to threats and retaliation to agreements with rivals,ā€ said U.S. Attorney General Merrick Garland in a press conference on Thursday.

This isnā€™t just a Swiftie problem ā€” rather, the pop starā€™s cultural ubiquity shed a brighter spotlight on the frustrations people have with Live Nation-Ticketmaster. From punk bands to podcast hosts, poor experiences with Ticketmaster have made the company loathsome to fans. In April, when the Dungeons & Dragons actual play show Dimension 20 put tickets on sale for its performance at Madison Square Garden, Ticketmasterā€™s dynamic pricing structure made ticket prices so astronomically high that they were unattainable for most fans. Dropout, the company that produces Dimension 20, later stated that dynamic pricing ā€” which automatically raises ticket prices based on demand ā€” was not explained to them before ticket sales.

Live Nation executive vice president Dan Wall published a statement responding to the allegations in the Department of Justiceā€™s lawsuit.

ā€œThe complaintā€”and even more so the press conference announcing itā€”attempt to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry,ā€ the statement says. ā€œIt blames concert promoters and ticketing companiesā€”neither of which control ticket pricesā€”for high ticket prices. It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the publicā€™s willingness to pay far more than primary tickets cost.ā€

Wall goes on to compare Ticketmasterā€™s 5% take rate with that of companies like Twitch (50%), StubHub (37%), Uber (25%) and several more. But with the exception of StubHub ā€” a resale platform ā€” the comparisons are not quite one-to-one. Ticketmaster also charges various kinds of service fees, which exceed 5%. The fact remains that itā€™s difficult for younger companies to disrupt Live Nationā€™s hold on the industry, since the vast majority of American venues are in business with them.

Garland claims that the public frustration with Live Nationā€™s alleged monopolistic behavior is more acute in America than in other countries.

ā€œIn other countries, where venues are not bound by Ticketmasterā€™s exclusive ticketing contracts, venues often use multiple ticketing companies for the same event, and fans see lower fees and more innovative ticketing products as a result,ā€ Garland said.



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