Sen. Elizabeth Warren (D-MA) opined in Rolling Stone that Ticketmaster and Live Nation are "bullies" with "predatory practices." Warren called out the ticketing giant for its unfair and unlawful behavior, specifically concerning Live Nation's monopoly on the live event industry.
Live Nation currently "controls more than half of all concert promotions at major U.S. concert venues," including New York's Irving Plaza and several House of Blues locations. The company is also responsible for 80% of ticket sales for "major concert venues."
Warren and the U.S. Department of Justice accuse Live Nation of threatening venues that do not use their platform and negatively impacting tours whose tickets are not sold through Ticketmaster.
The DOJ filed a lawsuit against Live Nation in May, alleging that the company violated antitrust laws. Live Nation and Ticketmaster were brought before Congress in 2023 after the website descended into disaster when Taylor Swift fans tried to buy tickets to the Eras Tour. Many fans were unable to get their hands on tickets, and those who did paid exorbitant prices.
READ ALSO: DOJ Moves to Sue Live Nation for Violating Antitrust Laws
Live Nation President and CFO Joe Berchtold argues that Live Nation controls only 5% of the concert venues in the United States, but these venues brought in nearly 50% of concert sales in 2022.
The American Economic Liberties Project, meanwhile, determined that Ticketmaster "services 78% of the top grossing arenas in the country." Among these arenas, Ticketmaster contributed 83% of the gross revenue: $2.4 Billion. Live Nation owns roughly 400 venues worldwide, promoting thousands upon thousands of events each year.
Live Nation and Ticketmaster merged in 2010. The decision was challenged by congress members, including current Senate Majority Leader Charles Schumer (D-NY), who wrote that the merger would "give a giant, new entity unrivaled power over concertgoers and the prices they pay to see their favorite artists and bands."
Nearly 15 years later, Live Nation and Ticketmaster remain in hot water with not only fans, but the U.S. Government. Prior to the Justice Department's current suit, it determined in 2019 that the company had violated a consent decree from the Ticketmaster and Live Nation merger, saying that the ticketing giant had "exerted pressure on venues to sign with Ticketmaster or risk not receiving Live Nation shows." Along with controlling venues, Live Nation can also withhold spaces from artists who choose not to work with the company.
"Merging parties will be held to their promises and the Department will not tolerate transgressions that hurt the American consumer," said former Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division in 2019.
Warren referenced this violation, saying in a 2023 speech before the Open Markets Institute, "as part of its merger with Ticketmaster, Live Nation committed not to withhold tours from venue owners who did business with Ticketmaster's competitors ... DOJ now alleges that Live Nation has repeatedly engaged in exactly the type of retaliation it swore would be prohibited."
Warren's pointed Rolling Stone article also slams Ticketmaster for the "Ticketmaster Tax," as the Justice Department titled it, which can cost roughly one third of a ticket's face value. The tax stems from a plethora of fees, including "service," "handling," "payment processing" and "facility" fees.
"This may be the moment that Ticketmaster's lock on live entertainment is broken, and performers and venues can reach their audiences directly," wrote Warren, seemingly hopeful that the Justice Department's lawsuit will bring about justice for ticket buyers, artists and venues.
"By enforcing the antitrust laws, the Justice Department may add a little fresh competition to an industry that has been under the thumb of a single corporate giant for too long," she concluded.
READ ALSO: Ticketmaster Hackers Put Data Of 560 Million Users For Sale on Dark Web
