Image source, Getty Images
- author, Peter Hoskins
- role, Business reporter
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The US Department of Justice (DOJ) plans to file a competition lawsuit against entertainment giant Live Nation as early as Thursday, sources familiar with the matter confirmed to the BBC’s US partner CBS News.
Prosecutors are expected to challenge the business practices of Ticketmaster’s parent company, the people said.
When the Justice Department brings cases over competition issues, it often seeks to force companies to split off parts of their businesses or change the way they operate.
The Ministry of Justice declined to comment when contacted by the BBC. The BBC has also contacted Live Nation for comment.
According to the Washington Post, which first reported the case, numerous state attorneys general are expected to join the federal legal fight.
The lawsuit is expected to allege that the company, which organizes concerts, sells tickets and owns venues, has squeezed out competitors and narrowed customer choices, leading to higher prices.
The move came after a years-long investigation by the Justice Department’s antitrust division. In 2022, CBS News reported that the Department of Justice was investigating the company and its Ticketmaster division.
Live Nation Entertainment was formed in 2010 following the merger of US-based event promoter Live Nation and ticket sales and distribution company Ticketmaster.
At the time, the Department of Justice approved the deal despite concerns that it would create a giant corporation that could dominate the live entertainment industry.
Live Nation Entertainment is facing growing criticism from fans, lawmakers, artists and competitors.
The company has been accused of having undue influence over live entertainment events in the United States and around the world.
Live Nation shares fell more than 6% in after-hours trading in New York after news of the Justice Department lawsuit broke.
