U.S. regulators have initiated legal action against Ticketmaster and its parent company Live Nation, alleging the companies have engaged in illegal ticket resale practices that may have cost consumers millions of dollars. The Federal Trade Commission (FTC), in collaboration with seven states, accuses the firms of coordinating with brokers to purchase concert tickets, which are subsequently sold at substantial markups, generating significant profits from resale fees.
According to the FTC, these practices contravene consumer protection laws. Ticketmaster, which holds a dominant position in the concert ticketing market, has faced criticism related to ticket pricing for an extended period. The present lawsuit represents an added challenge for the company. Ticketmaster and Live Nation have yet to respond publicly to the FTC’s claims.
The FTC alleges that, while artists can impose limits on ticket purchases, Ticketmaster and Live Nation ignored violations of those limits by brokers. The commission claims the companies allowed these supposedly illegally obtained tickets to be resold on their platform, generating an estimated $3.7 billion in resale fees from 2019 to 2024. Regulators assert that Ticketmaster profited from these agreements with brokers.
Additionally, the FTC has accused Ticketmaster of misleading consumers with lower advertised ticket prices compared to the final amounts paid. Ticketmaster controls about 80% of ticket sales for major concert venues and has come under scrutiny following a problematic ticket rollout for Taylor Swift’s Eras Tour in 2022, which highlighted the company’s significant influence in live entertainment.
The legal issues facing Live Nation also include a separate lawsuit from the U.S. Department of Justice, which alleged the company employs illegal tactics to maintain a monopoly in the live music industry, leading to higher ticket prices and reduced service quality. A judge previously dismissed Live Nation’s attempt to dismiss these antitrust claims. Live Nation and Ticketmaster engage in multiple roles within the industry, prompting concerns about their position as a “gatekeeper.”
Source: https://www.bbc.com/news/articles/cpq5nq9gyrvo?at_medium=RSS&at_campaign=rss