10 more states join DOJ’s antitrust suit against Live Nation, Ticketmaster

[LAUREN TAYLOR]

MORE TROUBLE FOR TICKETMASTER AND ITS PARENT COMPANY LIVE-NATION – AS 10 MORE STATES HAVE JOINED THE ANTITRUST LAWSUIT FILED BY THE DEPARTMENT OF JUSTICE, 29 OTHER STATES AND WASHINGTON, D.C. IN MAY ACCUSING TICKETMASTER OF ACTING AS A MONOPOLY AND INFLATING CONCERT TICKET PRICES. THIS FOLLOWED OUTRAGE BY CONSUMERS — SPECIFICALLY TAYLOR SWIFT FANS — WHO HAD TROUBLE ACCESSING TICKETS TO HER ERAS TOUR.

THE ATTORNEYS GENERAL OF INDIANA, IOWA, KANSAS, LOUISIANA, MISSISSIPPI, NEBRASKA, NEW MEXICO, SOUTH DAKOTA, UTAH AND VERMONT JOINED THE CASE ON MONDAY AS THE DOJ ISSUED AN AMENDED COMPLAINT WITH MORE ALLEGATIONS AGAINST THE LIVE ENTERTAINMENT COMPANIES.

ALONG WITH THE DOJ’S GOALS OF BREAKING UP LIVE NATION AND TICKETMASTER – AND QUOTE “RESTORING COMPETITION IN THE LIVE CONCERT INDUSTRY” — STATES ARE NOW SEEKING TREBLE DAMAGES FOR WHAT THEY SAY FANS WERE OVERCHARGED. WITH CLAIMS BEING FILED UNDER FEDERAL ANTI-MONOPOLY LAWS – STATES HAVE THE ABILITY TO SEEK THREE TIMES THE MONETARY DAMAGES.

NEW YORK ATTORNEY GENERAL LETITIA JAMES SAYS IN A STATEMENT: “IT’S TIME FOR A NEW ERA WHERE FANS, VENUES, AND ARTISTS ARE NOT TAKEN ADVANTAGE OF BY BIG CORPORATIONS THAT RUN THE WORLD OF LIVE EVENTS.”

IN THE UPDATED COMPLAINT – THE DOJ USES INTERNAL LIVENATION DOCUMENTS IT OBTAINED DURING THE LEGAL PROCESS TO MAKE ITS POINT.

THE DOJ SAYS LIVE NATION OWNS OR CONTROLS MORE THAN 265 CONCERT VENUES IN NORTH AMERICA, AND THROUGH TICKETMASTER CONTROLS ROUGHLY 80% OR MORE OF MAJOR VENUES’ PRIMARY TICKETING FOR CONCERTS.

THE SUIT SAYS INTERNAL LIVE NATION DOCUMENTS INDICATED TICKETMASTER IS THE PRIMARY TICKETER FOR ABOUT 80% OF THE U.S. ARENAS THAT HOST NBA OR NHL TEAMS. ADDING NO OTHER RIVAL TICKETED MORE THAN 14%.

THE DOJ POINTS TO TICKETMASTERS’ USE OF ITS NON-TRANSFERRABLE SAFETIX DIGITAL TICKETS. THE DOJ SAYS INTERNAL DOCUMENTS SHOW LIVENATION BEING ABLE TO PREVENT FANS FROM BUYING OR SELLING ON A RIVAL TICKET PLATFORM WAS ITS QUOTE “PRIMARY MOTIVATION” TO USE THIS TICKETING SYSTEM.

THE COMPLAINT SAYS, “LIVE NATION’S ANTICOMPETITIVE CONDUCT HAS NOT ONLY HARMED FANS IN THE FORM OF MORE AND HIGHER FEES, BUT ALSO UNDERMINES INNOVATION. COMPETITION INCREASES THE ARRAY AND QUALITY OF SERVICES AVAILABLE AND MAKES IT EASIER FOR FANS TO FIND AND SEE ARTISTS THEY LOVE.” 

IN RESPONSE TO THE AMENDED COMPLAINT – A LIVENATION SPOKESPERSON TELLS REUTERS THE LAWSUIT “STILL WON’T SOLVE THE ISSUES FANS CARE ABOUT RELATING TO TICKET PRICES, SERVICE FEES, AND ACCESS TO IN-DEMAND SHOWS.”

ADDING THEY “LOOK FORWARD TO SHARING MORE FACTS AS THE CASE PROGRESSES.”