The US Justice Department (DOJ) is poised to file a competition lawsuit against Live Nation, the parent company of Ticketmaster, as early as Thursday, sources confirmed to CBS News. This legal action is expected to challenge the company’s business practices, which allegedly stifle competition and limit customer choice, leading to higher prices.
The lawsuit may aim to force Live Nation to divest parts of its business or alter its operations. The federal government, supported by several state attorneys general, is set to join the case, which follows a lengthy DOJ antitrust investigation into Live Nation and its Ticketmaster unit.
The scrutiny of Live Nation’s dominance in the live entertainment industry has been intensifying, with growing criticism from fans, lawmakers, artists, and competitors. The company, formed by the 2010 merger of Live Nation and Ticketmaster, was initially approved by the DOJ despite concerns about its potential to monopolize the market.
The impending lawsuit underscores ongoing concerns that Live Nation’s control over concerts, ticket sales, and venue ownership is reducing competition and harming consumers. Following reports of the DOJ’s planned legal action, Live Nation’s shares dropped by more than 6% in after-hours trading in New York.
