{"id":32631,"title":"Ticketmaster is facing a breakup due to ‘illegally’ inflating ticket prices","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-05-24T03:12:25+00:00","modified":"2024-05-24T03:12:25+00:00","canonical_url":"https://stockmark.it/ticketmaster-is-facing-a-breakup-due-to-illegally-inflating-ticket-prices/","markdown_url":"https://stockmark.it/ticketmaster-is-facing-a-breakup-due-to-illegally-inflating-ticket-prices.md","json_url":"https://stockmark.it/ticketmaster-is-facing-a-breakup-due-to-illegally-inflating-ticket-prices.json","category":"Financial","categories":["Financial"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-39-1.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"US authorities launched a legal action to dissolve Ticketmaster following failed ticket sales by artists such as Taylor Swift, Bruce Springsteen and others. This sparked accusations of anticompetitive behavior.\n\nThe US Justice Department filed a lawsuit in federal court against Ticketmaster, its parent company Live Nation and the group for illegally increasing ticket prices to the detriment of artists and fans.\n\nMerrick Garland said that the US Attorney General: “We allege Live Nation uses illegal, anti-competitive practices to exert its monopolistic power over the live event industry in the United States, at the expense of fans, musicians, smaller promoters, and venue operators.\n\nThe result is that the fans will pay more fees, the artists will have fewer chances to perform, and smaller promoters are squeezed out. Venues also have less real options for ticketing services. It is time to break up Live Nation-Ticketmaster.”\n\nIn recent years, Ticketmaster has been criticized for its high prices, long wait times and poor customer service.\n\nFans and politicians were furious when Swift’s Eras Tour tickets went on sale in 2022, resulting in a website crash.\n\nSpringsteen’s fans have also taken aim at Ticketmaster, after their “dynamic pricing system” meant that tickets for his tour could be purchased for up to $5,000 (£4,000).\n\nThe lawsuit filed in New York federal court accuses Live Nation a series of anti-competitive acts that give the company an undisputed stranglehold on the live music market.\n\nSome of these include long-term agreements that prevent venues from using other ticketing websites, blocking venues from using more than one ticket seller and threatening them with losing money and fans if the venues do not use Ticketmaster.\n\nThe Justice Department alleges, too, that Ticketmaster had threatened retaliation if a subsidiary did not stop competing with it for contracts to promote artists.\n\nLive Nation denies that it engages anti-competitive behavior. It had previously stated that Ticketmaster’s high market share was due to “the large gap between the quality and next best primary ticketing systems”\n\nTicketmaster is the world’s largest ticketing company, with a half-billion tickets sold worldwide every year.\n\nAccording to the lawsuit, it controls or owns more than 265 concert venues across North America. It also handles 80pc primary ticketing at large venues.\n\nThe lawsuit highlights the aggressive approach of US President Joe Biden, who is cracking down on companies accused of anti-competitive behavior in sectors from “big technology” to supermarkets.\n\nLive Nation’s spokesman stated: “The DOJ lawsuit will not solve the issues that fans are concerned about, such as ticket prices, service charges, and accessing shows in high demand.\n\nThe DOJ may have won PR in the short-term by calling Ticketmaster a monopoly, but they will lose the case in court, because they ignore the economics of live entertainment. For example, the majority of service fees are paid to the venues and the competition has slowly eroded Ticketmaster’s market share and profits.\n\n“Our growth is a result of helping artists tour internationally, creating lasting memories with millions of fans and supporting local economies by maintaining quality jobs across the country.\n\nWe will fight these false allegations and use this chance to shine a light on the music industry. We will continue to push reforms to protect artists and consumers."}