Minnesota Joins Antitrust Lawsuit Against Ticketmaster and Live Nation

(KNSI) – Minnesota is joining a class action lawsuit targeting Ticketmaster and Live Nation.

Attorney General Keith Ellison says his office has signed on with 30 other states and the Department of Justice. The filing says the companies now operate an illegal monopoly.

Ellison says millions of Minnesotans flock to live entertainment venues of all sizes each year, and they are forced to pay more for each show due to Live Nation’s dominance over the industry. He laments that the situation embodies corporate greed.

“One of the major drivers of inflation in this country is corporate greed and illegal behavior – and Live Nation and Ticketmaster are prime examples.

“People are fed up with having no option but to fork over their hard-earned money for the high prices and hidden fees that Ticketmaster routinely charges. Live Nation’s anticompetitive behavior is to blame, because too often, consumers who just want to enjoy live entertainment have nowhere else to turn. Especially at a time when it’s tough for Minnesotans and all Americans to afford their lives, I’m proud to join DOJ and this bipartisan coalition from across the country in holding Live Nation to account. Consumers deserve an end to these obnoxious and monopolistic practices, including Live Nation divesting itself of Ticketmaster for good.”

The lawsuit was filed in U.S. District Court for the Southern District of New York. In addition to excessive fees, it alleges that the company has forced artists to use Live Nation to promote their shows or risk being shut out of certain venues. That means a bigger cut is taken from the acts themselves, which is eventually made up for through higher ticket prices for consumers.

Live Nation is responding to the lawsuit. The company released a statement Thursday. “The DOJ’s lawsuit won’t solve the issues fans care about relating to ticket prices, service fees, and access to in-demand shows. Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin. Our growth comes from helping artists tour globally, creating lasting memories for millions of fans, and supporting local economies across the country by sustaining quality jobs. We will defend against these baseless allegations, use this opportunity to shed light on the industry, and continue to push for reforms that truly protect consumers and artists.”

Executive Vice President, Corporate and Regulatory Affairs Dan Wall adds, “The DOJ’s complaint attempts to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry. It blames concert promoters and ticketing companies—neither of which control ticket prices—for high ticket prices. It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost. It blames Live Nation and Ticketmaster for high service charges, but ignores that Ticketmaster retains only a modest portion of those fees. In fact, primary ticketing is one of the least expensive digital distributions in the economy.”

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