Live Nation and Ticketmaster are under fire once again. On Thursday, a proposed class action lawsuit accused the companies of monopolizing concert promotion and ticketing for major venues, following their 2010 merger. This legal action comes on the heels of the U.S. Department of Justice's own lawsuit against the merger.

Allegations of Market Domination

According to the complaint filed by Abraham Leifer, Live Nation and Ticketmaster have monopolized three major U.S. markets: concert promotion, primary ticketing services, and secondary ticketing services. The lawsuit, representing potentially millions of ticket buyers, claims this dominance has eliminated significant competition.

Leifer alleges that Live Nation's market share in major venues exceeds 60%. To maintain this dominance, the company requires venues to sign exclusive agreements, preventing them from using other event promoters. Furthermore, Live Nation controls numerous venues through leaseholds, ownership, or equity interests.

Anticompetitive Practices

Leifer states, "To access the majority of significant concerts and events in the U.S., consumers must interact with Live Nation directly or indirectly. Live Nation requires venues it promotes to use Ticketmaster as the sole agent for primary ticketing, eliminating competition."

This exclusive tying of services, according to Leifer, inflates Live Nation's profits by collecting revenue from both the promotion of events and the sale of tickets. Ticketmaster, controlling over 70% of primary ticket sales for major venues, charges supracompetitive prices, pushing out competitors like SeatGeek and StubHub.

Impact on Secondary Ticketing Market

The lawsuit also claims Ticketmaster's dominance extends to the secondary ticketing market. By making it difficult to resell tickets purchased from Ticketmaster on other platforms, the company deters potential secondary ticketing agents, allowing it to maintain high prices and harming consumers.

Class Action Details

Leifer seeks to represent two classes of plaintiffs: a nationwide class of end-user buyers of secondary tickets and a state indirect purchaser class covering 26 states, Washington, D.C., and Puerto Rico. Both classes involve consumers who bought secondary tickets from sellers who initially purchased tickets from Ticketmaster or Live Nation affiliates since the 2010 merger.

The lawsuit alleges monopolization and trade restraints in violation of the Sherman Antitrust Act and state antitrust laws. It seeks various forms of relief, including injunctive relief, damages, restitution, and attorney fees.

DOJ Lawsuit and Historical Context

The consumer lawsuit coincides with the DOJ's lawsuit against Live Nation, seeking to unwind the 2010 merger. This move follows previous DOJ actions, including a 2020 settlement extension over allegations of Live Nation's retaliatory practices against venues using other ticketing providers.

The government's complaint, joined by attorneys general from over two dozen states, describes Live Nation as a "monopolist" controlling nearly every aspect of the live music industry. This latest legal challenge joins other ongoing litigation against Live Nation, including investor and consumer lawsuits alleging exorbitant ticket prices since the merger.

Legal Representation

Leifer is represented by Israel David LLC and Robbins Geller Rudman & Dowd LLP. Counsel information for Live Nation and Ticketmaster was not immediately available.

The case is Abraham Leifer v. Live Nation Entertainment Inc. et al., case number 1:24-cv-03994, in the U.S. District Court for the Southern District of New York.