The Justice Department files a lawsuit to dismantle Live Nation, the parent company of Ticketmaster.

• The parent company of Ticketmaster, Live Nation, is being sued by the U.S. Department of Justice for alleged antitrust violations.
• A lawsuit has been filed after a DOJ investigation in 2022 and complaints from fans following the botched ticket rollout for Taylor Swift's Eras tour.
• Major concert venues' primary ticketing is controlled by Live Nation through Ticketmaster, according to the complaint.

The parent company of Ticketmaster is being sued by the U.S. Department of Justice for alleged antitrust violations.

A lawsuit, supported by 30 states, was filed on Thursday against Live Nation over allegations of a monopoly in the ticketing industry, which stems from a DOJ investigation launched in 2022 and strengthened by complaints from fans about the mishap with tickets to Taylor Swift's Eras tour rollout.

"According to Attorney General Merrick Garland, Live Nation uses illegal and anticompetitive practices to maintain its monopoly in the live events industry in the US, resulting in higher fees for fans, fewer opportunities for artists, smaller promoters being pushed out, and limited options for venue operators. To address this issue, Garland has called for the breakup of Live Nation-Ticketmaster."

Shares of Live Nation were down 5% Thursday morning.

The DOJ's accusation of a monopoly is "absurd," according to Live Nation.

Live Nation and Ticketmaster are being accused by the DOJ of causing fan frustration with the live entertainment industry. The complaint alleges that concert promoters and ticketing companies, which do not control ticket prices, are to blame for high ticket prices. However, Dan Wall, Live Nation executive vice president for corporate and regulatory affairs, argues that there are other factors contributing to higher ticket prices, such as increasing production costs, artist popularity, and online ticket scalping that reveals the public's willingness to pay more than primary tickets cost.

In 2010, Live Nation and Ticketmaster merged to form a dominant entity in the live event industry. The company manages ticket sales for live entertainment globally and owns and operates more than 265 entertainment venues in North America, including over 60 of the top 100 amphitheaters, as per the DOJ lawsuit.

Major concert venues' primary ticketing is controlled by Live Nation through Ticketmaster, according to the complaint.

The Justice Department has accused Live Nation of perpetuating a self-reinforcing business model by charging fees and revenue from concert fans and sponsorships, which it then uses to secure exclusive promotion deals for artists. These deals give artists access to key entertainment venues across the country. Live Nation then uses its dominance to lock new concert venues into long-term exclusionary contracts, thereby restarting the cycle, the lawsuit alleges.

Live Nation is accused of engaging in unethical business practices, including threatening financial retaliation against potential competitors and venues that work with rivals, strategically acquiring smaller and regional competitive threats, and exploiting a relationship with venue partner Oak View Group to flip their contracts over to Ticketmaster and discourage competition in concert promotions.

In November 2023, a Senate subcommittee issued a subpoena to Live Nation and Ticketmaster after a months-long investigation into the exorbitant inflated ticket prices for Taylor Swift's Eras tour, which led to site disruptions and slow queues from 14 million users, including bots, in the previous year.

Many fans opted to attend Taylor Swift's tour in other countries due to the steep prices in the U.S., which could be more affordable even after international air travel.

The DOJ stated in a press release that music fans in the United States are denied innovative ticketing options and are forced to use outdated technology, all while paying higher ticket prices compared to fans in other countries.

This month, Live Nation reported its highest first-quarter revenue, with a 21% increase from the previous year.

In the past year, the company has faced scrutiny over transparency issues related to concealed fees in ticket pricing.

This breaking news. Please check back for updates.