The legal battle with Ticketmaster refers to multiple lawsuits that have been filed against the company for alleged anti-competitive and monopolistic practices. Ticketmaster is the largest ticket sales and distribution company in the United States, controlling a large percentage of major event tickets. Critics have accused Ticketmaster of monopolistic behavior, price gouging, and acquiring competitors to dominate the ticket sales market.
What sparked the legal battle with Ticketmaster?
In the early 2010s, there was growing criticism of Ticketmaster over their service fees, which could add 25-50% to the base ticket price. Some events had fees over $50 per ticket, leading to complaints that Ticketmaster was gouging fans. These high fees were enabled by Ticketmaster’s dominant market position.
Things came to a head in 2017, when Ticketmaster was revealed to be working with scalpers to resell tickets at higher prices despite their own caps on resales. This violated Ticketmaster’s own stated policies around secondary ticket sales. It also suggested anti-competitive collusion between Ticketmaster and scalpers.
Later that year, Ticketmaster acquired its competitor Songkick, a concert discovery and ticket selling app. Critics said this was monopolistic and would reduce competition in ticketing. These factors ultimately led to multiple lawsuits being filed in 2018 and 2019.
Who filed lawsuits against Ticketmaster?
Several legal actions have been taken against Ticketmaster:
- In October 2018, two fan groups – the Citizens Against Live Nation Entertainment and the Fan Freedom Project – sued Ticketmaster and its parent company Live Nation. They accused Ticketmaster of abusing its market dominance both through fees and its Songkick acquisition.
- In February 2019, around two dozen individual Ticketmaster customers across 13 states filed a lawsuit in California federal court. They claimed Ticketmaster’s high fees constituted an illegal monopoly.
- Also in February 2019, the Canadian Competition Bureau filed proceedings against Ticketmaster and Live Nation, stating they had abused their dominance in live entertainment ticket sales.
In addition, over the years multiple artists and concert promoters have sued Ticketmaster over its fees and market practices. Two major settlements came in 1994 and 2003, though critics say Ticketmaster continues to dominate ticketing today.
What are the key allegations against Ticketmaster?
There are a few core allegations underpinning the lawsuits against Ticketmaster:
Illegal monopolistic practices
As the dominant primary ticket seller, Ticketmaster now has 80-90% market share of major venue ticket sales. Critics allege they have crushed or acquired competitors to achieve this monopoly power in violation of antitrust laws.
Price gouging fees
Ticketmaster’s fees are seen as unreasonably high, with no alternative to turn to. Lawsuits claim these exploitative fees are only possible due to lack of competition, and constitute an illegal abuse of monopoly.
Anti-competitive collusion
Ticketmaster is accused of coordinating with ticket scalpers, even when it publicly disparages their practices. This suggests monopolistic collusion between Ticketmaster and secondary resellers.
Predatory acquisition of Songkick
By acquiring its growing competitor Songkick, Ticketmaster is accused of dominating concert discovery as well as ticket sales. This has harmed innovation and consumer choice.
What has been Ticketmaster’s response?
Ticketmaster has denied the accusations of antitrust violations and monopolistic practices. Some of their key defenses include:
- They need to charge fees to offset the costs of providing ticketing services and technology.
- Fees are clearly disclosed upfront so consumers have choice whether to purchase.
- They face competition from primary ticket sellers like AXS, as well as secondary resellers.
- They have not coerced venues into using their ticketing platform over competitors.
- They acquired Songkick to innovate in ticket sales, not crush a competitor.
Ticketmaster basically claims the ticketing market remains competitive and open. They say that services, features, and investments they have made justify their position and fees. Significant internal changes have been made since the scalping scandal as well.
Could Ticketmaster be forced to break up or alter practices?
If any of the lawsuits succeed, Ticketmaster could face serious consequences including:
- Being broken up or forced to divest assets, reducing their market dominance.
- Having price caps put on their fees to limit gouging of consumers.
- Greater scrutiny and limits to their mergers & acquisitions activity to foster competition.
- Opening up their ticketing platforms so competitors can integrate or synchronize.
A major court ruling against Ticketmaster could significantly shake up the ticketing industry. However, some experts think lawsuits face an uphill battle given Ticketmaster’s entrenched position. Antitrust cases also tend to be complex and difficult to win.
What’s the latest news on the lawsuits?
As of late 2023, the major lawsuits against Ticketmaster remain ongoing. Some key updates include:
- In April 2022, the California federal court ruled the price gouging lawsuit brought by fans can go forward, rejecting Ticketmaster’s motion to dismiss.
- In June 2022, Ticketmaster filed a motion to dismiss the Canadian Competition Bureau’s lawsuit, calling allegations of stifling competition “unsupported.”
- Plaintiffs in the California lawsuit recently revised their claim to highlight the combo of Ticketmaster’s fees and Live Nation’s concert promotion dominance harming consumers.
- Ticketmaster has continued acquiring ticket sales companies, including Spain’s Einticket in April 2022.
With no major ruling or settlement yet, the legal pressure remains on Ticketmaster. Ongoing media and fan scrutiny of their fees and practices will likely continue to fuel the lawsuits. However, if any single lawsuit prevails, it could deal a body blow to Ticketmaster’s business model.
Conclusion
The legal battle with Ticketmaster aims to take on what critics see as monopolistic practices that exploit consumers. However, Ticketmaster defends its dominant market position and fees as legitimate competitive practices in a complex ticketing landscape. Major lawsuits by fans, competitors, and regulators are still ongoing. It remains to be seen if any will succeed in significantly changing or curbing Ticketmaster’s ticketing power.
