Ticketmaster Faces Expanded DOJ Antitrust Case Over Nontransferable Tickets
DOJ Expands Antitrust Case Against Ticketmaster, Alleging Anti-Competitive Practices
The U.S. Department of Justice (DOJ) has broadened its antitrust lawsuit against Ticketmaster and its parent company, Live Nation, with new allegations targeting the ticketing giant’s push for nontransferable tickets. The amended complaint, which cites internal Ticketmaster documents, claims that this initiative was designed to stifle competition from rival platforms such as StubHub and SeatGeek.
In 2019, Ticketmaster introduced SafeTix, a system that replaced static barcodes on electronic tickets with encrypted barcodes that refresh every 15 seconds. While the company marketed this as a measure to combat ticket fraud, the DOJ’s complaint suggests that reducing competition was a primary motivation for the new ticketing system.
Internal documents from a 2014 executive meeting referred to the non-transferable digital ticket as a “game-changer.” Furthermore, a 2017 meeting described the rotating barcode as a “product enhancement for market share” and an opportunity to “REDUCE TM’S ECONOMIC RISK.”
The amended complaint also sheds light on Ticketmaster’s market dominance. An internal Live Nation document cited in the complaint reveals that Ticketmaster is the primary ticketer for approximately 80 percent of arenas hosting NBA or NHL teams. As of 2022, Live Nation-promoted events accounted for 70 percent of all amphitheater shows across the country.
The DOJ alleges that Ticketmaster’s conduct has resulted in consumers paying higher fees for live event tickets than they would in a competitive market. The exact monetary impact on consumers remains undetermined and will require further investigation into Ticketmaster and Live Nation’s financial records, as well as those of third-party competitors.
This expansion of the antitrust case against Ticketmaster and Live Nation marks a significant development in the ongoing scrutiny of the company’s business practices and market position in the live events industry.
