The Justice Department and a group of states plan to sue Live Nation LYV -0.57%decrease; red down pointing triangle on Thursday, alleging the entertainment giant has used its ticketing monopoly to suppress competition and should be broken up, according to people familiar with the matter.
The lawsuit, to be filed in a New York federal court, would seek changes to the company’s business practices, including by asking a judge to effectively undo the 2010 merger of Live Nation and Ticketmaster. The Justice Department during the Obama administration allowed the merger to close despite concerns it would create an indomitable live-entertainment giant.
Among the practices the department plans to challenge are exclusive ticketing contracts that Ticketmaster has with many of the venues where high-profile acts perform, the people said. Those agreements typically run between three and five years and Ticketmaster often gives lucrative financial advances that entice the venues to sign up for long-term deals.
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If a single company controls most concert venues and ticket sales, how might this impact new artists or smaller venues trying to enter the market?
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Would breaking up a ticketing giant like Live Nation/Ticketmaster lead to better experiences for concert-goers, and why?
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Should the government intervene in the breakup of big companies to encourage competition, and why?
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How do you think a monopoly on concert ticket sales affects the prices and availability of tickets for fans?
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Do you believe it's fair for one company to control most concert ticket sales, and why?
