June 18, 2024

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Live Nation: US Department of Justice files lawsuit against TicketMaster owner

Live Nation: US Department of Justice files lawsuit against TicketMaster owner

Image source, Getty Images

Comment on the photo, Live Nation Entertainment has faced criticism from fans, lawmakers, artists, and competitors

  • author, Peter Hoskins
  • Role, Business reporter

The US Department of Justice is set to file a lawsuit against entertainment giant Live Nation on Thursday, multiple sources familiar with the matter confirmed to CBS News, the BBC’s US partner.

The plaintiffs are expected to challenge the business practices of parent company Ticketmaster, the sources said.

In many cases, when the Department of Justice files lawsuits over competition issues, it seeks to force a company to split up parts of its business or change the way it operates.

The Ministry of Justice declined to comment when contacted by the BBC. The BBC has also requested comment from Live Nation.

The Washington Post, which first reported the story, said several state attorneys general would join the federal government in its legal challenge.

The lawsuit is expected to allege that the company — which organizes concerts, sells tickets and owns venues — has squeezed competitors and weakened customer choices, helping to drive up prices.

This move comes after an investigation conducted by the Antitrust Division of the Ministry of Justice, which extended for years. In 2022, CBS News reported that the Justice Department was looking into the company and its Ticketmaster unit.

At the time, the Justice Department approved the deal despite concerns that it would create a giant capable of controlling the live entertainment industry.

Live Nation Entertainment has faced increasing criticism from fans, lawmakers, artists, and competitors.

The company has been accused of having too much influence on live entertainment events in the United States and around the world.

After news of the Justice Department case was announced, Live Nation shares fell more than 6% in after-hours trading in New York.