Signs are seen at Live Nation NYC headquarters on May 23, 2024 in New York.
Michael M. Santiago | Getty Images
Live National Entertainment has reached a settlement with the Justice Department over antitrust concerns surrounding its Ticketmaster platform, a senior DOJ official said Monday.
The settlement would see Ticketmaster end some of its exclusivity agreements with music artists and open up the ticketing industry to greater competition. It still needs approval from more than 20 states that have filed suit as well as the court.
As part of the settlement, Ticketmaster agreed to pay approximately $280 million in civil penalties and will offer a standalone third-party ticketing system allowing other companies like SeatGeek to use its technology.
The senior DOJ official said Monday that Live Nation had also agreed to divest at least 13 of its theaters and would no longer be able to require artists to use other Live Nation products tied to its venues. However, later on Monday, Live Nation said it had not agreed to divest the venues because it was leasing – rather than owning – some venues.
Live Nation shares rose 5% in morning trading. Live Nation and Ticketmaster did not immediately respond to requests for comment.
Ticketmaster has long faced criticism that its dominance in live events and ticketing drives up prices for consumers. The company has faced increased scrutiny in recent years from fans who say it has become harder and more expensive to get tickets to coveted events.
In 2022, backlash erupted when ticket distribution for Taylor Swift’s Eras tour was mishandled, leading to an investigation into the company. And in 2024, the DOJ — along with more than two dozen states — filed a lawsuit to break up Live Nation and Ticketmaster, which merged in 2010.
In September, Live Nation was separately sued by the Federal Trade Commission for what the agency called “unlawful” ticket resale tactics. The FTC said Ticketmaster controls about 80% of major concert venue ticketing.
In a statement Monday, New York Attorney General Letitia James said her office will continue to fight Live Nation’s alleged monopoly, even after its settlement with the DOJ.
“The recently announced settlement with the U.S. Department of Justice fails to resolve the monopoly issue at the center of this case and would benefit Live Nation at the expense of consumers. We cannot accept it,” said James, who is joined by attorneys general from more than 20 other states.
—Julia Boorstin and Stephen Desaulniers of CNBC contributed to this report.