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Live Nation faces DOJ antitrust lawsuit for dominance in ticketing

April 16, 2024
in Celebrity
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The U.S. Division of Justice (DOJ) is making ready to file an antitrust lawsuit in opposition to Dwell Nation Leisure over issues in regards to the firm’s dominant place within the reside occasion ticketing market.

The transfer comes after years of controversy surrounding Dwell Nation and its subsidiary, Ticketmaster, which have confronted criticism for his or her market practices and dealing with of main occasions.

The general public’s discontent with Ticketmaster’s dealing with of Taylor Swift’s ‘Eras’ tour was a tipping level. The dearth of transparency, exorbitant charges, and incapability to curb bot purchases sparked a public outcry. Throughout a congressional listening to in January 2023, U.S. senators lambasted Dwell Nation for these points, resulting in an apology from Joe Berchtold, Dwell Nation’s president and CFO. Ticketmaster, nonetheless, has persistently shifted blame to scalpers utilizing bots, deflecting criticism from its personal practices.

The DOJ lawsuit echoes longstanding issues about Dwell Nation’s market energy. In 2010, federal regulators permitted Dwell Nation to merge with Ticketmaster regardless of reservations from regulators and concertgoers. Subsequent investigations in 2019 revealed that Dwell Nation had allegedly pressured ticket venues to make use of Ticketmaster’s providers. In consequence, the DOJ imposed further restrictions on the corporate, which is able to expire in 2025.

Regardless of Ticketmaster’s management over a good portion of the first ticket market, the corporate denies allegations of monopolistic conduct, citing elevated competitors within the business.

Earlier this yr, the American Financial Liberties Challenge launched a coverage temporary advocating for the breakup of the merged entity referred to as “The Case Towards Dwell Nation-Ticketmaster.” The temporary coincided with the one-year anniversary of the #BreakUpTicketmaster marketing campaign, which has gained important assist from followers, artists, and impartial venue homeowners. 

Katherine Van Dyck, senior counsel on the American Financial Liberties Challenge, burdened the urgency of the state of affairs, stating that “Dwell Nation-Ticketmaster’s monopoly energy has led to unfair practices that hurt venues, artists, and followers. The DOJ should act swiftly and decisively to revive competitors within the reside occasions business.”

Lee Hepner, authorized counsel on the American Financial Liberties Challenge, echoed this sentiment, calling for separating Dwell Nation’s varied enterprise segments to make sure truthful competitors.The coverage temporary outlines particular treatments the DOJ may pursue, together with the whole divestment of Ticketmaster and Dwell Nation’s core companies. It additionally suggests ending Ticketmaster’s unique venue agreements and implementing stricter oversight measures.



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Tags: antitrustDOJdominancefacesLawsuitLiveNationticketing
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