Live Nation Entertainment is the world’s largest live entertainment company and promoter of live music events. Over the past several years, Live Nation has faced multiple allegations related to anti-competitive and monopolistic business practices. Here is an overview of some of the major allegations against Live Nation:
Allegations of Monopolistic Practices
Live Nation owns Ticketmaster, which is the largest primary ticketing company in the United States. This vertical integration of promotion, venues, and ticketing has led to allegations that Live Nation has monopoly power in the live music industry. Critics argue that Live Nation’s dominance allows them to impose high fees and barriers on concert venues, artists, and fans.
In 2019, the U.S. Department of Justice launched an antitrust investigation into Live Nation on the grounds that the company has abused its power. The DOJ is examining complaints that Live Nation pressures concert venues into using Ticketmaster and retaliates against venues that work with competitors.
Unfair Competition Practices
Some independent promoters and venues have accused Live Nation of unfair competition practices. They claim Live Nation uses exclusivity agreements and leverages its vast resources to block competitors from booking artists or venues. Examples of such allegations include:
- Requiring artists touring with Live Nation to use Ticketmaster for all events.
- Signing exclusive agreements with large venues and festivals.
- Retaliating against venues that work with other promoters by refusing to book shows there.
- Leveraging its vast resources and routing abilities to schedule tours in a way that blocks competitors.
Critics argue these practices make it very difficult for independent companies to compete with Live Nation. In 2010, Live Nation settled an antitrust suit brought by competitors that accused the company of anticompetitive behavior, including coercive exclusivity agreements.
Allegations of Excessive Service Fees
As the dominant player in ticketing, critics allege Live Nation and Ticketmaster charge excessive fees that hurt consumers and box office revenues. Service fees often add 25-30% to the base ticket price. Live Nation argues the fees reflect the costs required to power its platform and offerings.
Some specific fee-related allegations include:
- Charging substantially higher fees compared to competitors.
- Misleading ticket buyers by advertising low prices then tacking on high fees later in the checkout process.
- Applying fees unevenly on a discriminatory basis against third-party resellers.
- Participating in speculative ticketing where third parties withhold tickets to drive up resale prices and fees.
Class action lawsuits have been filed against Live Nation accusing the company of deceiving consumers on fees. Legislators have also held hearings criticizing Live Nation’s ticketing fees as exploitative.
Allegations of Poor Refund Practices
Live Nation has faced criticism over its refund policies, especially during the COVID-19 pandemic. Key allegations include:
- Only providing refunds for postponed or canceled events as account credits rather than cash.
- Assessing excessive processing fees for refunds.
- Dragging feet on issuing refunds for months after events were postponed or canceled.
- Making it very difficult for purchasers to obtain refunds by imposing tight eligibility windows, requiring physical tickets, and long wait times to contact customer service.
Live Nation has argued that unprecedented circumstances forced it to shift policies, though legislators and consumer groups accused the company of exploiting the pandemic to withhold billions in refunds rightfully owed to customers.
Allegations of Deceptive Data Collection
Live Nation has access to vast amounts of data on concertgoers through its ticketing platform and concert productions. Critics argue the company engages in deceptive data collection practices, including:
- Making it very hard for customers to opt-out of behavioral tracking and data sharing.
- Selling or sharing customer data with third-parties without proper disclosure or consent.
- Using inflated attendance numbers that count unused tickets to demonstrate an artist’s popularity to venues.
- Misusing data to engage in dynamic pricing that charges higher fees based on demand.
Legislators have accused Live Nation of violating consumer privacy through opaque opt-out policies and uncontrolled data sharing. Live Nation claims it engages in standard data practices that benefit artists and fans.
Conclusion
In summary, Live Nation faces multiple allegations of monopolistic practices, unfair competition, excessive fees, poor refund policies, and deceptive data use. Critics argue the company’s vertical integration and dominance in live entertainment let it exploit venues, artists, and fans. However, Live Nation claims that its size and pricing reflect the high costs of providing its platform and serving a complex, global live events market.
Antitrust regulators, legislators, and consumer groups continue to pressure Live Nation over these issues. However, the company remains the giant of live entertainment with formidable resources and influence. Striking an equitable balance between Live Nation’s business interests and fair competition, pricing, and data practices remains an ongoing public policy challenge.