The Department of Justice has filed an antitrust lawsuit against Live Nation Entertainment accusing the concert and ticketing giant of exerting monopolistic power through its exclusive ticketing agreements, its promotions business and its ownership of many popular amphitheaters, among other claims.
The lawsuit, joined by 30 states, claims that Live Nation’s 2010 merger with Ticketmaster created a dominant entity in the live event industry. DOJ wants to split up Live Nation and Ticketmaster.
“The defining feature of a monopolist is monopoly profits derived from monopoly pricing,” responded Live Nation executive vice-president Dan Wall. “Live Nation in no way fits the profile. Service charges on Ticketmaster are no higher than elsewhere, and frequently lower. The company’s overall net profit margin is at the low end of profitable S&P 500 companies.”
The company generates $22 billion a year in revenue.
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