Ticketmaster Under Fire: Legal Battles and Monopoly Concerns Shape Live Entertainment Future

Growing Scrutiny of Ticketmaster’s Market Dominance

Ticketmaster and its parent company, Live Nation Entertainment, are currently facing a significant lawsuit from U.S. antitrust enforcers, who accuse the company of monopolizing markets across the live concert industry. The controversy has reignited calls to break up the Ticketmaster and Live Nation merger from 2010, as the combined companies currently control 70% of primary ticketing and live event venues.

Recent FTC Action Against Ticket Resellers

The Federal Trade Commission has recently taken legal action against a ticket broker operation for allegedly using unlawful tactics to exceed ticket purchasing limits for popular events and reselling tickets at significantly higher prices. The investigation revealed that the defendants purchased nearly 380,000 tickets from Ticketmaster in just over a year, costing approximately $57 million, and resold a portion of these tickets for around $64 million on secondary marketplaces.

Company’s Defense and Market Position

In response to the allegations, Live Nation has stated that the Department of Justice’s lawsuit won’t address fans’ primary concerns about ticket prices, service fees, and access to popular shows. The company argues that calling Ticketmaster a monopoly ignores the basic economics of live entertainment, noting that most service fees go to venues and that competition has reduced Ticketmaster’s market share and profit margin. They have pledged to defend against these allegations while working to reform consumer protections.

Impact on Live Entertainment Industry

A successful antitrust suit could result in significant consequences for Ticketmaster and Live Nation, potentially leading to fines or forcing them to relinquish their dominant position in the live music industry. This case draws parallels to historical antitrust actions, such as the 1982 ruling that led to the breakup of AT&T’s telephone services monopoly.

Industry observers note that Ticketmaster’s near-monopoly has been a longstanding concern, and those who haven’t attended high-profile concerts recently may not realize how challenging the ticket purchasing process has become. The outcome of these legal challenges could reshape the future of live entertainment ticketing and distribution.