US sues Ticketmaster, Dwell Nation over ‘unlawful monopoly’ | Enterprise and Financial system Information

The Division of Justice in the US has filed a sweeping antitrust lawsuit towards Ticketmaster and mother or father firm Dwell Nation Leisure, accusing them of operating an unlawful monopoly and inflating ticket costs for live shows, exhibits and different occasions.

The lawsuit, filed in US federal court docket in Manhattan on Thursday, was introduced with 30 state and district attorneys common and seeks to interrupt up the monopoly they are saying is squeezing out smaller promoters and hurting artists.

“The reside music business in America is damaged as a result of Dwell Nation-Ticketmaster has an unlawful monopoly,” Assistant Lawyer Common Jonathan Kanter mentioned in a press release.

“Our antitrust lawsuit seeks to interrupt up Dwell Nation-Ticketmaster’s monopoly and restore competitors for the advantage of followers and artists.”

For years, live performance followers and politicians within the US have been calling for a re-examination of Dwell Nation’s buy of Ticketmaster in 2010.

The state of affairs drew widespread consideration in 2022 after the ticket vendor botched gross sales to Taylor Swift’s first live performance tour in years, sending followers into hours-long on-line queues, charging costs that clients mentioned had been too excessive and drawing fees of poor service.

The debacle prompted congressional hearings and payments in US state legislatures geared toward higher defending customers.

On Thursday, the Justice Division accused Dwell Nation of a slew of practices that enable it to take care of a stronghold over the reside music scene.

These embody utilizing long-term contracts to maintain venues from selecting rivals, blocking venues from utilizing a number of ticket sellers and threatening venues that they might lose cash and followers if they didn’t select Ticketmaster, in keeping with the division.

The Justice Division additionally accused Dwell Nation of threatening to retaliate towards one agency if it didn’t cease a subsidiary from competing for artist promotion contracts.

“The Justice Division filed this lawsuit on behalf of followers who ought to be capable of go to live shows with no monopoly standing of their means,” US Lawyer Common Merrick Garland mentioned throughout a information convention on Thursday morning.

“We’ve filed this lawsuit on behalf of artists who ought to be capable of plan their excursions round their followers and never be dictated by an illegal monopolist,” Garland mentioned.

“We’ve filed this lawsuit on behalf of the unbiased promoters and venues, which ought to be capable of compete on a stage taking part in subject.”

Dwell Nation denies allegations

Dwell Nation has denied that it engages in practices that violate antitrust legal guidelines.

When it was reported that the corporate was below federal investigation in 2022, the live performance promoter mentioned in a press release that Ticketmaster enjoys such a big share of the market due to “the massive hole that exists between the standard of the Ticketmaster system and the subsequent greatest main ticketing system”.

Dwell Nation known as the lawsuit a doable “PR win for the [Justice Department] within the brief time period”, however mentioned the leisure firm would prevail in court docket.

“[The lawsuit] received’t clear up the problems followers care about referring to ticket costs, service charges, and entry to in-demand exhibits,” it mentioned, including that “there may be extra competitors than ever within the reside occasions market”.

Thursday’s lawsuit comes as US President Joe Biden’s antitrust enforcers have adopted an aggressive method as they search to create extra competitors in a variety of industries, from Massive Tech to healthcare to groceries.

In March, the Justice Division filed a lawsuit towards Apple alleging that the tech large has monopoly energy within the smartphone market.

The Justice Division is doing the correct factor. It’s well beyond time to interrupt up Dwell Nation/Ticketmaster. Hidden charges, poor service, a stranglehold on competitors are all dangerous for followers. Our Senate judiciary listening to set the stage. Now we have to get this achieved.

— Amy Klobuchar (@amyklobuchar) May 23, 2024

US lawmakers welcomed the Justice Division’s announcement on Thursday, with Senator Amy Klobuchar saying the federal government was “doing the correct factor” by suing Dwell Nation.

“It’s well beyond time to interrupt up Dwell Nation/Ticketmaster,” Klobuchar, who chairs the Senate judiciary subcommittee on competitors coverage, antitrust, and shopper rights, mentioned in a social media submit.

“Hidden charges, poor service, a stranglehold on competitors are all dangerous for followers. Our Senate judiciary listening to set the stage. Now we have to get this achieved.”

Ticketmaster is the world’s largest ticketseller, processing 500 million tickets every year in additional than 30 international locations. About 70 p.c of tickets for main live performance venues within the US are bought by means of Ticketmaster, in keeping with knowledge in a federal lawsuit filed by customers in 2022.

The corporate owns or controls greater than 265 of North America’s live performance venues and dozens of high amphitheaters, in keeping with the Justice Division.