U.S. Department Of Justice Closing In On Ticketmaster Antitrust Lawsuit, Sources Say

The United States Department of Justice could file an antitrust lawsuit against Live Nation Entertainment and its subsidiary Ticketmaster by the end of the year, three sources close to the matter told Politico.

Speaking on the condition of anonymity, sources said the DOJ is aiming to file the suit as early as this fall. The action would accuse the country’s largest live entertainment company of abusing its power in the concert industry. If successful, it could possibly lead to the breakup of the company formed in the highly controversial 2010 merger between Live Nation and Ticketmaster, creating Live Nation Entertainment.

Live Nation/Ticketmaster has seen a public reckoning since a disastrous Taylor Swift pre-sale last fall left millions ticketless and seeking answers. This DOJ investigation, however, began last summer before the Swift sale happened. That highly publicized imbroglio is allegedly not part of the Department’s investigation, sources say.

The Department of Justice’s case is also not a foregone conclusion. As Politico points out, the agency’s antitrust division could face resource constraints with a number of big cases on the docket. The department is planning to move forward with antitrust lawsuits against Apple, VISA, Google, and an attempt to block a merger between Spirit Airlines and JetBlue. However, two of the sources did confirm that a potential case against Ticketmaster “has been part of recent discussions about upcoming litigation plans in the department’s antitrust division.”

Live Nation Entertainment is reportedly cooperating with the investigation—which is in its early stages—and was allegedly told it will focus on the Ticketmaster side of the business. The Department has asked questions about prohibitions on reselling tickets, exclusive deals with venues to only use Ticketmaster, and contracts for artist tours, according to one of the sources.

“We’re in regular contact with the DOJ and they haven’t told us they think we’re doing anything illegal or asked us to address any concerns,” Dan Wall, Live Nation’s executive vice president for corporate and regulatory affairs, said in a statement. “It would be highly irregular for the DOJ to file without that notice and a lot of dialogue afterwards. However, if they do file we are prepared to defend ourselves.”

A Justice Department spokesperson declined Politico‘s request for comment.

Live Nation has been under federal oversight since 2010 when it merged with Ticketmaster. After agreeing to various provisions to ensure the fairness of the live music market, the newly formed Live Nation Entertainment was cited in 2019 for violations of the merger agreement. Despite this, the company’s merger was upheld in 2019 and extended through 2025, with the corporation agreeing to stay under the court oversight of an independent compliance monitor through the end of the term.

The new lawsuit in discussion at the DOJ is not expected to focus on violations of the past settlement, two of the sources with knowledge said.

This possible antitrust lawsuit is just one of many cases investigating Ticketmaster. There is another conduct probe within the Department of Justice, though that could take years to file, as well as investigations from attorneys general and lawmakers across the country.