The Justice Department is stepping up its antitrust efforts by targeting Live Nation, filing a lawsuit that seeks to split up the entertainment giant. Prosecutors and a coalition of states claim that Live Nation used its Ticketmaster ticketing monopoly to crush competition, following a two-year probe into the company. This legal action comes 14 years after the Justice Department approved the merger of Live Nation and Ticketmaster, with Ticketmaster dominating ticket sales in the US and Live Nation owning numerous high-profile venues and being a major concert promoter.
Criticism has long been directed at the combined company for its high fees, poor customer service, and unfair practices. When news of the lawsuit broke, Live Nation’s stock dropped approximately 5%. Attorney General Merrick Garland accused Live Nation of engaging in illegal and anti-competitive behavior to maintain its monopoly over the live events industry at the expense of fans, artists, small promoters, and venue operators. He called for Live Nation to be broken up to address these issues.
In response, Live Nation quickly denied the allegations, labeling them as unfounded. The company’s executive vice president of corporate and regulatory affairs, Dan Wall, disputed the notion that Live Nation and Ticketmaster were solely responsible for high ticket prices, placing blame instead on concert promoters, ticketing companies, and various other factors. Wall highlighted rising production costs, the popularity of artists, and the public’s willingness to pay higher prices for tickets as significant contributors to ticket price increases.
The lawsuit filed by the Justice Department is part of a broader crackdown on anticompetitive behavior in the entertainment industry. Additional details on the case can be found by clicking the link provided.
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