Jody Godoy
NEW YORK (Reuters) – In an updated version of a lawsuit filed in May, attorneys general from about two dozen U.S. states are seeking triple damages against Live Nation Entertainment Inc and its ticket sales unit Ticketmaster Inc, accusing them of monopolizing the market across the live concert industry.
Three months ago, the U.S. Department of Justice and several states filed a lawsuit seeking to break up Live Nation, alleging that concert promoters and Ticketmaster illegally inflated concert ticket prices, harming artists.
Some states originally sought damages under state law in their lawsuits. By adding federal antitrust claims, the states can seek triple the monetary damages.
On Monday, 10 states joined the lawsuit filed in Manhattan federal court, and 26 more states and the District of Columbia filed suit on behalf of their residents seeking treble damages.
New York Attorney General Letitia James said in a statement that state residents are seeking damages for being overcharged by Live Nation and Ticketmaster.
“It’s the beginning of a new era where fans, venues and artists will not be taken advantage of by the big corporations that run the live events world,” she said.
Indiana, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Mexico, South Dakota, Utah and Vermont also joined the lawsuit, bringing the total to 39 states and the District of Columbia.
According to the lawsuit, Live Nation directly manages more than 400 musicians and controls approximately 60 percent of concert promotions at major venues. According to the lawsuit, Live Nation owns or manages more than 265 concert venues in North America and, through Ticketmaster, controls approximately 80 percent or more of the primary ticket sales for major venue concerts.
A Live Nation spokesman said the lawsuit “does not address issues that fans care about, including ticket prices, service fees and access to popular shows.”
“We expect further facts to become clear as the case progresses,” the spokesman said.
The Justice Department said in court documents that Live Nation and Ticketmaster’s “vast reach” has allowed the companies to “exist at the center and periphery of nearly every aspect of the live music ecosystem.”
In 2010, the Department of Justice approved the controversial merger of Ticketmaster and Live Nation, but with conditions to ensure the combined company would not harm competition.
In 2020, the court extended much of the Justice Department’s oversight of the merger until 2025 because the department said Ticketmaster had retaliated against stadiums and arenas that chose to use other ticket sellers.
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The Justice Department said Live Nation has engaged in further anticompetitive behavior since its last lawsuit.
(Reporting by Jody Godoy in New York, Ismail Shakir in Ottawa and Katherine Jackson in Washington; Editing by Rami Ayyub and Matthew Lewis)