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Sunday, June 16, 2024

California AG files lawsuit against Live Nation alleging anticompetitive practices

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Attorney General Rob Bonta | Official website

Attorney General Rob Bonta | Official website

California Attorney General Rob Bonta, in collaboration with the U.S. Department of Justice (U.S. DOJ) and a bipartisan coalition of 30 attorneys general, has filed a lawsuit against Live Nation, the parent company of Ticketmaster. The suit alleges that Live Nation's dominance in ticketing and concert promotions has resulted in anticompetitive behavior that stifles competition.

"As the fifth largest economy in the world, California knows that vigorous competition is essential to a well-functioning economy," said Attorney General Bonta. "Live Nation imposed its dominance of the live concert industry by manipulating the marketplace — sending ripples of economic injustice throughout our state. While this illegal conduct benefits Live Nation’s bottom line — it hurts artists, their fans, and our economy. This lawsuit sends a clear message: Here in California, we’re committed to protecting consumers, holding industry accountable, enforcing antitrust laws, and ensuring a fair and competitive market."

The lawsuit claims that Live Nation violated Sections 1 and 2 of the Sherman Antitrust Act, which prohibits anticompetitive agreements, monopolization, and attempted monopolization. It also alleges violations of California’s Unfair Competition Law.

According to the complaint, Live Nation maintains its monopoly through exclusive contracts with promoters and venues, compelling them to use both its ticketing and concert promotion services. The company allegedly leverages its market power over various aspects of the live music entertainment industry—from artist management to ticketing and promotions—to block innovation and unfairly compete with rivals.

The lawsuit further alleges that Live Nation has harmed fans through higher fees and an overall worse ticketing experience due to lack of competition. It claims that Live Nation locks up venues with restrictive long-term agreements and threatens them with loss of access to tours if they sign with rival ticketers. Additionally, it states that Live Nation forces artists to select it as a promoter instead of competitors by leveraging its extensive network of venues.

The plaintiffs seek court intervention to restore competition in the live entertainment industry by prohibiting Live Nation from engaging in anticompetitive practices, ordering divestiture of Ticketmaster from Live Nation, and securing financial compensation for California as well as for fans who were overcharged.

Attorney General Bonta joins this legal action alongside attorneys general from Arizona, Arkansas, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Virginia Washington West Virginia Wisconsin Wyoming and the District of Columbia.

Attorney General Bonta has been active in enforcing antitrust laws across various industries. In March 2024 he joined U.S DOJ in filing a lawsuit against Apple alleging anticompetitive behavior related to iPhone smartphones In February he announced a lawsuit challenging the proposed merger between Kroger and Albertsons And in December 2023 he announced a $700 million multistate settlement with Google over allegations concerning Android smartphone application market monopolization

A copy of the complaint is available here.

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