Live Nation Entertainment(LYV) foxbusiness.com·2024-05-23 14:36Core Viewpoint - The U.S. Justice Department, along with 30 state and district attorneys general, has filed a civil antitrust lawsuit against Live Nation and its subsidiary Ticketmaster, alleging monopolization and anti-competitive practices in the live entertainment industry [1][2]. Group 1: Allegations Against Live Nation - Live Nation is accused of using unlawful, anti-competitive conduct to maintain monopolistic control over the live events industry, negatively impacting fans, artists, smaller promoters, and venue operators [2]. - The lawsuit claims that fans face higher fees, artists have fewer concert opportunities, smaller promoters are pushed out, and venues have limited choices for ticketing services [2]. Group 2: Business Model and Practices - The Justice Department describes Live Nation-Ticketmaster's business model as a "flywheel," which captures fees from concert fans and uses that revenue to secure exclusive promotion deals with artists and long-term exclusive ticketing contracts with venues [4]. - Live Nation-Ticketmaster allegedly threatens financial retaliation against firms to prevent competition in the U.S. concert promotions market [5]. - The company locks concert venues into long-term exclusive contracts, restricting their ability to consider rival ticketing options or switch to more cost-effective technologies [6]. Group 3: Impact and Legal Actions - The lawsuit seeks structural relief to restore competition in the live concert industry, aiming to provide better choices at lower prices for fans and open opportunities for working musicians and performance artists [7]. - Live Nation-Ticketmaster has gained control over key venues through acquisitions and partnerships, further limiting artists' options unless they agree to use the company's promotion services [7].