The DOJ has sued Ticketmaster. What that means for ticket prices, fees and concertgoers

Amazon

NBC Universal, Inc.

Will the Justice Department's lawsuit against Ticketmaster and Live Nation give concertgoers, sports fan and theater patrons some relief from surging ticket prices?

The lawsuit could potentially lead to a breakup of Live Nation Entertainment, a company that resulted from Ticketmaster's 2010 merger with concert promoter Live Nation. Attorney General Merrick Garland said the aim is to allow more competition and to let smaller players gain more of the U.S. ticket-selling market — which Ticketmaster controls a whopping 70% of.

More competition could lead to cheaper tickets. But experts say live event lovers shouldn't expect changes any time soon.

The Justice Department on Thursday accused Live Nation of engaging in a slew of practices that have allowed it to maintain a stronghold over the live music scene. They accused it of using long-term contracts to keep venues from choosing rival ticketers, blocking venues from using multiple ticket sellers and threatening venues that they could lose money and fans if they don’t choose Ticketmaster.

If it’s happened to you, it may have peeved you. It’s estimated that 85% of Americans have paid them at some point.

The uproar that resulted from a myriad of problems Swifties encountered while trying to buy tickets through Ticketmaster for the pop star's Eras Tour in 2022 shined a light on cracks in the U.S. ticketing system.

State attorneys general — 30 of whom have joined the Justice Department's lawsuit — started probing Ticketmaster. The widespread social media outcry even led to a Senate hearing.

Eleanor Fox, professor emeritus at the NYU School of Law, said the debacle of an entertainment giant appearing incapable of servicing an eager audience might have helped the Justice Department build its case by making the scale of Ticketmaster's domination more apparent.

“I mean, you can say it was extraordinary that there was so much demand (and that is what led to problems), but they knew it was going to be extraordinary there was so much demand,” Fox said. “When you have competition, the companies are more sensitive and responsive to problems that can come up.”

Why are ticket prices so high?

Ticket prices have gone up for multiple reasons, including a huge surge in demand after the COVID-19 pandemic.

Live Nation reported last month that worldwide ticket sales for the top 100 tours in 2023 jumped 46% compared with the previous year, bringing in $9.17 billion in sales. Attendance at Live Nation-produced events jumped 20% to a staggering 145 million last year.

According to trade publication Pollstar, the average ticket price from the 100 top tours in 2023 was $122.84, which was 17% higher than the year before and a 31% increase compared to the average price in 2018.

And as anyone who has tried to score tickets to a popular event knows, service fees and ticket resales can push prices up much higher, in some cases into the thousands of dollars.

The Justice Department's lawsuit alleges that having a giant company like Live Nation Entertainment exacerbates markups since it controls so much of the market.

What does Ticketmaster say?

Live Nation and Ticketmaster which have long clashed with artists and fans, have always denied they act in a monopolistic manner. They say they aren't to blame for high ticket prices. They said Thursday that the DOJ's lawsuit “won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows.” They say service fees go to concert venues and that outside competition has ”steadily eroded” Ticketmaster’s market share.

What happens next?

Unless it is dismissed, the lawsuit Thursday kicked off what is likely to be a long trial. The trial might take a year to commence, and then there would be months of arguments before a judge issues a ruling, NYU School of Law's Fox said.

“And especially if the judge orders a breakup, there’s going to be an appeal,” she added. “So you are looking at years.”

The government has several ongoing lawsuits accusing big companies of engaging in illegal monopolies that box out competitors and drive up prices.

In March, the Justice Department sued Apple, accusing the tech giant of engineering an illegal monopoly in the smartphone market.

Earlier this month, closing arguments were made in a lawsuit against Google that dates from the Trump administration. Federal prosecutors accused the tech giant of maintaining a monopoly status as a search engine.

In September, the Federal Trade Commission sued Amazon, alleging the e-commerce behemoth abuses its position in the marketplace to inflate prices on and off its platform, overcharge sellers and stifle competition. Amazon asked for the suit to be dismissed in December, but a judge set a trial date for October 2026.

OTHER NEWS

14 minutes ago

New report shows common medication puts at-risk individuals in danger — and heat is only making matters worse

14 minutes ago

‘Complete dud’: Matt Canavan and Abigail Boyd go head-to-head in heated net zero debate

14 minutes ago

Former SAA chairperson Dudu Myeni passes on at 60

14 minutes ago

25 people penalized for transporting 103 illegal pilgrims

14 minutes ago

Man Utd Transfer News: Red Devils told to hijack move for ideal Casemiro replacement Joao Palhinha

14 minutes ago

How the ‘least cultured’ place in Britain reinvented itself

14 minutes ago

'Geez, he's raw!' - Michael Owen sends WARNING about misfiring Liverpool forward

14 minutes ago

Emma Raducanu’s Olympic decision confirmed as Team GB squad for Paris 24 is revealed

14 minutes ago

He plays like Kroos: Man Utd could land "special" 51m Mainoo partner

14 minutes ago

Terminated Red Bull junior driver speaks out following axe

14 minutes ago

United Rugby Championship Team of the week: A Springbok in waiting, ‘Huwipulotu’ and the Bulls front-row all feature after semi-finals

14 minutes ago

Hunter Biden beams as he's seen out in Hollywood after felony gun conviction

14 minutes ago

Trump threatens to cut off aid to Ukraine 'prior to taking the White House as president-elect'

14 minutes ago

Fourteen Jordanians die during Hajj pilgrimage in Saudi Arabia

14 minutes ago

How explosion of mega warehouses is turning America's heartland into a hellscape, as raging locals say soulless eyesores are ruining their lives

14 minutes ago

Inside the bitter fight between the Mormons and small town America: Church accused of 'bullying' picturesque hamlets into letting them build towering temples

14 minutes ago

Glamorous socialite 'dupes Palm Beach elite with $2M scam' at heart of shopping mecca for the mega rich

14 minutes ago

Video: Fury after police ram terrified runaway cow with their squad car down London street - with cops forced to refer itself to watchdog amid backlash and Home Secretary demanding explanation over 'heavy-handed' incident

14 minutes ago

Video: Fury after police ram terrified runaway cow with their squad car down London street - with cops forced to refer itself to watchdog amid backlash and Home Secretary demanding explanation over 'heavy-handed' incident

19 minutes ago

Why student loan forgiveness sparks anger: A philosopher, attorney general, sociologist and religious thought expert weigh in

19 minutes ago

Detroit pastor thanks Trump for visiting the ‘hood’ as Biden, Obama who ‘never came’ attend LA fundraiser

19 minutes ago

Andrew Garfield keeps it casual as he enjoys a date night with glamorous doctor girlfriend Kate Tomas at Chiltern Firehouse

20 minutes ago

Olympics-Kipyegon targets double gold in Paris

20 minutes ago

Wilding review – a biodiversity success story in West Sussex

20 minutes ago

Lok Sabha Elections 2024 | Rajeev Chandrasekhar Counters Elon Musk’s EVM Tampering Remark | News18

25 minutes ago

Hamburg police fire shots at axe-wielding person at Euro 2024 fan parade

27 minutes ago

Feeney claims back-to-back Darwin race wins

27 minutes ago

Exodus of skilled workforce rises 119%

27 minutes ago

American VAR expert Christina Unkel gives ITV edge over BBC at Euro 2024

27 minutes ago

Insider Today: Meta's manager squeeze

27 minutes ago

Fewer than 200,000 Britons living abroad apply to vote in UK election

27 minutes ago

Frustration and loathing in Las Vegas: What Nevada voters REALLY think of a Trump Biden 2024 election

27 minutes ago

Video: As Kate Middleton gets back behind the camera, how the Princess' passion for taking pictures has seen her capture some of the most touching royal photos in decades

30 minutes ago

Euro 2024: Man shot by Hamburg police after ax attack

30 minutes ago

Trump allies hope his daughter's father-in-law can help flip Arab American votes

32 minutes ago

George Strait Breaks US Concert Attendance Record

32 minutes ago

Steelers Fall To Middle Of The Pack In Final NFL Offseason Power Rankings

32 minutes ago

The Bosasa connection: Gwede Mantashe faces bribery probe

32 minutes ago

The current favourite to be Ireland's next manager

32 minutes ago

Architect David Chipperfield: ‘We used to know what progress was. Now we’re not so sure’