WASHINGTON, DC (HYPEBOT) – The US Department of Justice could file an antitrust lawsuit against concert promoter Live Nation Entertainment (LNE) and it’s subsidiary Ticketmaster (TM) before the end of the year, according to a new report.
If successful, the legal action could lead to a forced separation of the two companies.
The lawsuit would charge that Live Nation and Ticketmaster are abusing their power over the live music industry, three sources told Politico. While a final official decision has not been made, it has been included in recent internal discussions about upcoming litigation, according to two of the sources.
Liver Nation has acknowledged that they are complying with a DOJ investigation but claims that any action is unlikely this year. “We’re in regular contact with the DOJ, and they haven’t told us they think we’re doing anything illegal or asked us to address any concerns,” Dan Wall, Live Nation’s EVP for corporate and regulatory affairs, told Dave Brooks of Billboard “It would be highly irregular for the DOJ to file without that notice and a lot of dialogue afterward. However, if they do file, we are prepared to defend ourselves.”
Live Nation and Ticketmaster are also the subject of increased Congressional scrutiny and legislation and bills in California, New York, Colorado, Massachusetts, and other states.
In 2019, the DOJ filed charges against Live Nation, alleging six violations of a consent decree over the ten years that followed the original 2009 merger. Live Nation agreed to pay fines and extend the consent decree through 2024.
Under President Biden, the DOJ has shown a willingness to enforce what it sees as any abuse of federal anti-trust laws. Fall trials are set against Google’s search business and to block the merger of JetBlue and Spirit Airlines. It is also in the late stages of investigations of Apple, Visa, Adobe’s takeover of Figma, and other proposed mergers.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
