The DOJ filed an antitrust lawsuit to dismantle Live Nation-Ticketmaster amid allegations of monopolistic behavior, and the news contributed to a drop in the company's stock.
Live Nation Entertainment Inc (NYSE:LYV), the company that owns Ticketmaster and also runs live events, saw its stock falling on Thursday as it is being threatened with a break-up.
A lawsuit is being launched by the US Department of Justice (DOJ) which aims to dismantle the company for alleged monopolistic practices.
“It is time to break up Live Nation-Ticketmaster,” Attorney General Merrick Garland said, whilst announcing the lawsuit
“Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators.”
It follows years of scrutiny over the company’s dominance in the ticketing industry after it was formed through the merger with Ticketmaster, in 2010.
The firm controls a significant share of the market, the suit claims, with the DoJ alleging that it uses exclusive long-term contracts and other practices to maintain a monopoly over events.
In New York, Live Nation stock was down $7.69, or 7.5% changing hands at $93.73.
