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The U.S. government sues to break up Live Nation-Ticketmaster
LYVLive Nation Entertainment(LYV) techcrunch.com·2024-05-23 15:58

Core Viewpoint - The U.S. Department of Justice and 30 state attorneys general have filed a lawsuit against Live Nation Entertainment, alleging monopolistic practices in the ticketing industry [1] Group 1: Allegations and Industry Control - Live Nation and Ticketmaster merged in 2010, creating a dominant entity that controls the majority of ticket sales and venue bookings in the U.S. [2] - The lawsuit was prompted by negative experiences of fans, particularly during the presale for Taylor Swift's Eras tour, which highlighted issues such as glitches and long wait times [2] - U.S. Attorney General Merrick Garland stated that Live Nation uses various tactics to suppress competition, including acquiring smaller promoters and venues, as well as retaliatory threats against rivals [3] Group 2: Public Frustration and Pricing Issues - The frustrations with Live Nation-Ticketmaster extend beyond Taylor Swift fans, affecting various groups including punk bands and podcast hosts, with complaints about high ticket prices due to dynamic pricing structures [4] - The dynamic pricing model has led to exorbitant ticket prices, making them unattainable for many fans, as seen in the case of Dimension 20's performance at Madison Square Garden [4] Group 3: Company Response - Live Nation's executive vice president Dan Wall responded to the lawsuit, arguing that the complaint misattributes fan frustrations to the company rather than acknowledging other factors influencing ticket prices, such as production costs and artist popularity [5][6] - Wall compared Ticketmaster's 5% take rate to other companies, suggesting that Ticketmaster's fees are not excessively high, although he acknowledged that various service fees can exceed this rate [6] Group 4: International Comparison - Garland noted that public frustration with Live Nation's alleged monopolistic behavior is more pronounced in the U.S. compared to other countries, where venues often use multiple ticketing companies, resulting in lower fees and more innovative ticketing options [7]