image source, Good pictures
- author, Peter Hoskins
- stock, Business Correspondent
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The US Department of Justice (DOJ) is set to file a rival lawsuit against entertainment company Live Nation as early as Thursday, multiple sources familiar with the matter confirmed to the BBC’s US affiliate CBS News.
Prosecutors are expected to challenge Ticketmaster parent company’s business practices, sources said.
In many cases, when the DOJ prosecutes competition issues, it seeks to force a company to divest parts of its business or change the way it operates.
The DOJ declined to comment when approached by the BBC. The BBC has also approached Live Nation for comment.
The federal government will be joined in its legal challenge by numerous state attorneys general, the Washington Post, which first reported the story, reported.
The lawsuit is expected to allege that the business — which includes hosting concerts, selling tickets and owning venues — squeezed out competitors and weakened consumer choice, which helped drive up prices.
The move follows years of investigation by the DOJ’s antitrust division. In 2022, CBS News reported that the Justice Department was looking into the agency and its Ticketmaster division.
Live Nation Entertainment was formed in 2010 through the merger of US-based events promoter Live Nation and ticket sales and distribution company Ticketmaster.
At the time, the DOJ approved the deal despite concerns that it would create a giant corporation capable of dominating the live entertainment industry.
Live Nation Entertainment has faced growing criticism from fans, lawmakers, artists and competitors.
The company has been accused of having a large influence on live entertainment events in the United States and around the world.
Shares of Live Nation fell more than 6% in after-hours trading in New York after news of the DOJ case broke.
