Can the DOJ Break Up Live Nation and Ticketmaster? Antitrust Trial Begins

Industry
Can the DOJ Break Up Live Nation and Ticketmaster? Antitrust Trial Begins

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Key Takeaways

  • DOJ antitrust trial targets Live Nation’s dominance in the live concert industry
  • Testimony expected from top executives and major entertainment industry figures on both sides
  • Live Nation argues that, after musicians and management set prices below market value, scalpers purchase them and sell them for an inflated price

In 2010, Live Nation and Ticketmaster merged, prompting immediate negative feedback from concertgoers and smaller promoters, and now, starting Monday, March 2, an antitrust lawsuit against the company begins. 

The Justice Department filed a lawsuit against Live Nation in 2024. This came around the time when Taylor Swift's "Eras Tour" tickets were hitting $1,000 each. 

The lawsuit, according to The Wall Street Journal, says that the Justice Department is "alleging that Live Nation illegally dominates the market for major concerts, harming artists, fans and venues."

Should the Justice Department emerge victorious, Ticketmaster and Live Nation could be forced to break up. 

Some Background on the Suit and Those Set to Testify

Some of the most notable people that will likely testify include Live Nation Chief Executive Michael Rapino and former Ticketmaster CEO and music manager/executive Irving Azoff. 

Last year, Live Nation brought in $25 billion, and Azoff represents acts like the Eagles and Harry Styles, two artists whose touring is handled by Live Nation. 

Additionally, the Justice Department says that Live Nation brought in Oak View Group, a management company co-founded by Azoff, and pressured arenas to use Ticketmaster.

Last year, Tim Leiweke, former CEO of Oak View, was charged with rigging the bid for a new arena in Austin, Texas. However, in December, President Donald Trump pardoned him. 

Some people expected to testify against Live Nation include former CEO of the Brooklyn Nets' parent company, John Abbamondi, an executive from the Dallas Cowboys, and a Live Nation competitor, Anchutz Entertainment Group. 

Abbamondi will discuss how the Barclays Center lost access to Live Nation shows after signing with SeatGeek. There will likely be a similar narrative with the Cowboys, too, who also switch to SeatGeek. 

Could This Lead to Lower Ticket Prices?

One of the most common complaints with Ticketmaster is the fees. The fees can be quite substantial, and the Justice Department is arguing that Ticketmaster's multi-year deals with venues are anticompetitive. 

So, if the jury sides with the Justice Department, it's possible, according to the Journal, that there could be a ban on exclusive contracts. 

That said, fees are a different story. 

“Right now we do not have real competitors for any of these companies, and it just takes time for competitors to emerge,” said Barak Orbach, an antitrust law professor at the University of Arizona, to the Journal. 
As for those ticket prices, though, Live Nation shifts the blame to artists and managers who list the prices below market value, and from there, scalpers scoop them up and resell them for a higher price. 
While a breakup is possible, some legal experts don't believe it'll happen.
“A breakup isn’t at all likely here, even if the government wins,” said Daniel Francis, an antitrust expert at NYU School of Law. 

Some Turmoil Within the Justice Department

Ahead of this case, the Justice Department is facing internal turmoil. 

Last month, Gail Slater, the antitrust chief, quit, and her top civil enforcer, Mark Hamer, resigned just before Slater left. 

Not only that, but one of their trial lawyers said last week he was leaving. 

“The legal claims are strong,” Orbach said. “That said, the DOJ does not have the talent and is in chaos.”
According to the Journal, a Justice Department spokeswoman said that the antitrust division has "steady leadership". Also, she added that the Live Nation trial team “is exceptionally capable and prepared to litigate this case.”

Richard Janvrin is a graduate of the University of New Hampshire. He started writing as a teenager before breaking into sports coverage professionally in 2015. From there, he entered the iGaming space in 2018 and has covered numerous aspects, including news, reviews, bonuses/promotions, sweepstakes casinos, legal, and more.