US regulators have taken legal action against Live Nation Entertainment, alleging that the entertainment giant has engaged in illegal practices to maintain a monopoly over the live music industry. The Department of Justice filed a lawsuit accusing Live Nation of using tactics that have excluded competitors, resulting in higher ticket prices and poorer service for customers.

Attorney General Merrick Garland has urged the courts to dismantle the company, claiming that Live Nation’s practices have made it a dominant force in the industry. Live Nation, along with its subsidiary Ticketmaster, is involved in organizing concerts, ticket sales, and venue ownership, effectively acting as a ‘gatekeeper’ for the live music sector.

The lawsuit, filed by the federal government’s Department of Justice and 30 states, alleges that Live Nation controls over 60% of concert promotions at major venues nationwide and approximately 80% of all major entertainment ticket sales through Ticketmaster. The company has been accused of using exclusive deals, threatening venues using competing ticketing services, acquiring potential rivals, and other anti-competitive tactics to maintain its position.

According to Mr. Garland, Live Nation’s actions have limited consumer choice, allowed Ticketmaster to impose excessive fees on fans, and hindered smaller promoters and artists’ opportunities. He emphasized the need to break up Live Nation to restore competition in the live entertainment industry.

In response, Live Nation has dismissed the allegations as politically motivated, arguing that the lawsuit fails to address the true factors influencing ticket prices, such as online scalping and production costs. The company stated that it will challenge the lawsuit and continue advocating for reforms that benefit consumers and artists.

Despite the legal battle, Live Nation highlighted that its market share has been declining, and its profit margin is not indicative of monopoly power. The company criticized the lawsuit as being driven by populist sentiments rather than genuine antitrust concerns.

As the dispute unfolds, the future of Live Nation’s dominance in the live music industry remains uncertain, with both legal and business implications at stake.