DOJ vs. Live Nation: Monopoly Allegations Emerge
- ticketmaster faces a lawsuit alleging illegal coordination with ticket brokers, deceptive pricing practices, and concealed fees.
- The Federal Trade Commission (FTC), along with the attorneys general of California, Colorado, connecticut, florida, Illinois, New York, and Washington, filed a civil lawsuit against Ticketmaster and its...
- The lawsuit alleges that Ticketmaster has illegally maintained a monopoly in the live event ticketing market.
ticketmaster faces a lawsuit alleging illegal coordination with ticket brokers, deceptive pricing practices, and concealed fees. The Federal Trade Commission and seven states filed the suit in September, seeking civil penalties and monetary relief.
Federal Trade Commission Lawsuit Against Ticketmaster
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The Federal Trade Commission (FTC), along with the attorneys general of California, Colorado, connecticut, florida, Illinois, New York, and Washington, filed a civil lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, on September 26, 2023.
The lawsuit alleges that Ticketmaster has illegally maintained a monopoly in the live event ticketing market. Specifically, the complaint details how Ticketmaster allegedly engages in practices that harm both fans and artists.
According to the FTC’s complaint, Ticketmaster’s actions include imposing contractual restrictions on venues that effectively prevent them from working with competing ticketing companies.
Allegations of Illegal Broker Coordination
The lawsuit claims Ticketmaster illegally coordinated with ticket brokers, allowing them to purchase tickets and resell them at inflated prices. This practice allegedly circumvented restrictions designed to prevent scalping and harmed consumers.
The FTC alleges that Ticketmaster knowingly allowed brokers to acquire large blocks of tickets, even when those brokers violated Ticketmaster’s own terms of service. This facilitated a secondary market where tickets were sold at considerably higher prices than initially offered.
For exmaple, the complaint details instances where ticketmaster provided brokers with “preferred access” to tickets, enabling them to bypass security measures intended to prevent automated purchasing.
Deceptive pricing and Concealed Fees
Ticketmaster is accused of deceiving consumers with hidden and mandatory fees that significantly increased the final cost of tickets. Thes fees were often not disclosed until late in the purchasing process.
The lawsuit alleges that Ticketmaster intentionally obscured the true cost of tickets by presenting a lower initial price and then adding fees at subsequent stages of the checkout process. This practice, known as “drip pricing,” is illegal under FTC rules.
The FTC estimates that these undisclosed fees cost consumers hundreds of millions of dollars annually. The FTC press release states the agency is seeking to obtain redress for consumers harmed by these practices.
Status of the Lawsuit (as of January 24, 2024)
As of January 24, 2024, the lawsuit is ongoing.Live Nation Entertainment has responded to the lawsuit, denying the allegations and asserting that its practices are pro-competitive and benefit both fans and artists.
On December 20, 2023, a federal judge denied a motion to dismiss the case,allowing the FTC and state attorneys general to proceed with their claims. The next steps in the legal process will likely involve discovery and potential trial.