
DOJ files antitrust suit against Ticketmaster, Live Nation
Clip: 5/23/2024 | 6m 23sVideo has Closed Captions
Ticketmaster, Live Nation a monopoly that should be broken up, Justice Department alleges
The Department of Justice wants the courts to break up Ticketmaster parent company Live Nation, the biggest concert promoter in the U.S. The company has faced intense scrutiny over prices and tickets selling out and reappearing on resale sites. More than two dozen states and the District of Columbia joined the lawsuit. California Attorney General Rob Bonta joined Geoff Bennett to discuss more.
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DOJ files antitrust suit against Ticketmaster, Live Nation
Clip: 5/23/2024 | 6m 23sVideo has Closed Captions
The Department of Justice wants the courts to break up Ticketmaster parent company Live Nation, the biggest concert promoter in the U.S. The company has faced intense scrutiny over prices and tickets selling out and reappearing on resale sites. More than two dozen states and the District of Columbia joined the lawsuit. California Attorney General Rob Bonta joined Geoff Bennett to discuss more.
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Learn Moreabout PBS online sponsorshipGEOFF BENNETT: The Department of Justice wants the courts to break up Live Nation.
That's the parent company of Ticketmaster and the biggest concert promoter in the U.S.
The entertainment conglomerate has long faced intense scrutiny over prices for concerts by major artists.
One of the most notable cases recently, tickets for Taylor Swift's Eras Tour, when Ticketmaster's Web site crashed during a presale and led to a widespread outcry.
The company blamed high demand.
But Swifties suspected foul play, as tickets quickly vanished, only to reappear on resale sites at much higher prices.
U.S. Attorney General Merrick Garland laid out his case today.
MERRICK GARLAND, U.S. Attorney General: Our complaint makes clear what happens when a monopolist dedicates its resources to entrenching its monopoly power and insulating itself from competition, rather than investing in better products and services.
We allege that Live Nation has illegally monopolized markets across the live concert industry in the United States for far too long.
It is time to break it up.
GEOFF BENNETT: More than two dozen states and the District of Columbia have joined the lawsuit.
And that includes California.
Rob Bonta is the state's attorney general, and he joins us now.
Welcome to the "NewsHour."
ROB BONTA (D), California Attorney General: Thanks for having me, Geoff.
GEOFF BENNETT: So, as we mentioned, you are one of dozens of state attorneys general supporting this lawsuit.
Why?
ROB BONTA: Because it's important for us as a regulator to make sure that we have a free, fair, lawful marketplace with competition, where monopolistic behavior, anticompetitive behavior doesn't distort the market and manipulate the market and bend the market to its will.
Live Nation can be a very successful company and follow the law.
Right now, they're not doing that.
Their conduct is illegal and unlawful and they're not allowed to do it.
So, in the interest of supporting a free and fair marketplace, making sure that consumers have a better experience with higher quality and lower prices, making sure that artists are able to choose the promoter that they want, instead of being forced to choose Live Nation, making sure that concert venues are able to pick the ticketing vendor that they want, and not be forced to pick a Ticketmaster, in the interest -- and to allow for start-ups and entrepreneurs and new entrants to the market to actually enter the market and compete.
That's why we're bringing this case.
It's an example of ensuring that monopolistic, anticompetitive behavior does not invade our marketplace and that our marketplace is free, fair and open to competition.
GEOFF BENNETT: Well, our team reached out to Live Nation for comment.
And they told us this.
"Calling Ticketmaster a monopoly may be a P.R.
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."
So they're basically saying that the ticket prices reflect the cost of doing business these days.
How do you respond to that?
ROB BONTA: If Live Nation was not involved in monopolistic behavior and anticompetitive conduct, they have nothing to worry about.
I don't think that deflection or pointing the finger elsewhere is the most productive approach here.
We have a coalition of state, federal and a District of Columbia -- and a district entity coming together, 29 states, as well as the federal government, bipartisan.
We have Texas and California together involved in this suit who looked at the facts and applied the law and concluded the same thing, that Live Nation is involved in illegal conduct and it cannot continue.
I think it's important for Live Nation to look at its conduct.
They have failed to follow the conditions of the merger from 2010.
They are forcing artists to use them as a promoter, instead of allowing artists to choose whatever promoter they want and have Live Nation compete for it in a competitive environment.
They're forcing venues to use Ticketmaster, and only Ticketmaster, a vendor that is very frustrating to fans, who know how low quality it is and, as mentioned earlier in this piece, led to a Web site crash, when folks were trying to access their beloved concert and to see Taylor Swift.
I think the conduct speaks for itself.
When you apply the law, the federal Sherman Act, they're violating both Sections 1 and Sections 1, and that's why we brought this lawsuit, because we felt we had no other choice to protect consumers and create a free, competitive marketplace.
GEOFF BENNETT: To your point about preserving competition in the free market, what do you say to people who might view this as government intervention in the free market?
ROB BONTA: Government has a role in creating a free market.
It's not an anything goes, no holds barred market where you can use violence and you can use illegal tactics and actions.
It is incumbent on the regulators, the referees, if you will, to ensure that the rules are being followed.
There are rules to our marketplace.
There are things that are illegal and not allowed.
And, unfortunately, Live Nation is involved in some of those actions that are unlawful.
We have had antitrust law, prohibitions on monopolistic conduct and the anticompetitive conduct, rules of the free marketplace road that have existed for decades, for centuries.
They still exist.
They have to be followed.
So it's not anything goes, the bigger - - the companies can use their size, their dominance, their control to squeeze out competition, to prevent the mom-and-pop, the entrepreneur with a great idea from creating competition.
That can't -- that's not allowed.
And so we're just ensuring the rules are being followed.
And then the market, competition will determine what happens next.
But the most important thing is to make sure the rules are being followed, there's no unlawful conduct.
That's why we brought this case.
GEOFF BENNETT: California Attorney General Rob Bonta, thanks again for joining us this evening.
ROB BONTA: Thanks for having me.
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