Ticketmaster, Live Nation Face Lawsuit From Concertgoers Over Monopoly And High Ticket Fees

(MENAFN- Live Mint) Millions of people who bought concert tickets through Ticketmaster are one step closer to proceeding as a class in a major antitrust lawsuit against Live Nation Entertainment and its Ticketmaster subsidiary. The plaintiffs say the company used its overwhelming market power to inflate ticket prices and impose excessive fees.

The case is before US District Judge George Wu in Los Angeles, who on Thursday took the motion for class certification under submission - a crucial step that could determine whether the lawsuit moves forward on behalf of millions of consumers.

Why class certification matters

If Judge Wu certifies the class, Ticketmaster and Live Nation could face billions of dollars in potential liability. Under federal antitrust laws, damages can be tripled if plaintiffs win.

A certified class would also strengthen the plaintiffs' leverage in settlement talks, since millions of affected consumers would be represented together rather than as individual cases.

The core allegations

The lawsuit claims Live Nation-Ticketmaster has violated US antitrust laws by using its dominance across several sectors of the live events industry to crush competition.

Key accusations include:

Monopoly in primary ticket sales:

Ticketmaster allegedly locks in major venues through exclusive contracts, leaving consumers with no real alternative.

Excessive ticket fees:

The plaintiffs say Ticketmaster uses its market control to impose inflated charges on fans purchasing tickets.

Coercive venue practices:

Live Nation allegedly pays huge sums to top artists to secure tours and then pressures venues to use Ticketmaster to recover those costs.

Control over the resale market:

Ticketmaster is also accused of forcing resellers and consumers to use its own secondary marketplace, limiting options and keeping prices high.

What Live Nation says

Live Nation's attorney Tim O'Mara argued that the class should not be certified because the plaintiffs failed to prove all ticket buyers were harmed in the same way. He pointed to differences across venues, markets, and negotiated fee structures.

The company maintains that its practices are competitive and that Ticketmaster's fees reflect market realities, not monopoly abuse.

What the Government says

This is not just a consumer lawsuit. The case was also brought by the US Department of Justice (DOJ) and 40 state attorneys general, who argue that Live Nation-Ticketmaster's vertical dominance harms:

-consumers

-rival ticketing companies

-smaller promoters

-artists

The DOJ alleges the company's control of ticketing, promotion, and venue management gives it unlawful power across the entire live events ecosystem.

Judge Wu's role so far

Judge George Wu has already:

-denied Ticketmaster's attempt to force consumers into arbitration

-refused to dismiss the suit

-allowed the case to move toward class certification

His next decision - whether to certify a class of millions - will shape the future of the entire case.

Why this case matters to concertgoers

If the plaintiffs succeed:

-ticket fees could drop

-competition in the ticketing market could increase

-alternative platforms could gain footholds

-a breakup of Live Nation and Ticketmaster could reshape the live events industry

The lawsuit also shines a spotlight on widespread frustration with what fans describe as sky-high fees, limited ticket options, and glitchy systems - problems critics say are symptoms of monopoly power.

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