Live Nation could be facing major consequences as the U.S. Department of Justice is reportedly contemplating to launch an antitrust lawsuit against the concert promoter and their ticketing unit Ticketmaster by the end of the year. This news caused a wave of panic across the music industry as shares of Live Nation dropped by 5% in extended trading on Friday.
The controversy is nothing new for the entertainment giant as U.S. senators had already been vocal about Live Nation’s ‘lack of transparency’ and ‘inability to block bot purchases of tickets’ following Taylor Swift’s long-awaited concert tour earlier this year. According to a report from Politico, the potential lawsuit contends that the ‘entertainment giant is abusing its power over the live music industry’.
Reuters reported that: “Earlier this year, U.S. senators slammed Live Nation’s lack of transparency and inability to block bot purchases of tickets following a major fiasco involving ticket sales for Taylor Swift’s long-awaited concert tour.”
Further adding to the uncertainty, Politico stated: “The potential lawsuit could claim that the entertainment giant is abusing its power over the live music industry, Politico reported, adding that the timing of the case was not firm and the DOJ could decide to drop it.”
The news spread quickly as the U.S. Department of Justice lashes out to bring the entertainment giant down, citing their ‘abusive power’ over the live music industry. While the outcome of the legal action is still to be announced, the department has made it clear that they are taking decisive action in response to the scandal.
Although the timing of the case is still uncertain, one thing is certain — Live Nation is in for a bumpy ride. U.S. senators as well as US citizens have already started speaking out against the ‘major fiasco’ that was Taylor Swift’s concert tour. However, with issues of this scale, only time will tell what the result of the Department of Justice’s impending actions will be.