(Reuters) – The U.S. Justice Department and a group of states will sue Live Nation Entertainment (NYSE:), potentially seeking a break, Bloomberg News reported on Wednesday, outlining the next step in the antitrust campaign against the owner of Ticketmaster.
The Justice Department is investigating Ticketmaster’s dominance in concert ticket sales, sources previously told Reuters. Concert fans and politicians have called for years to reconsider the 2010 merger between Live Nation and Ticketmaster, especially after the disastrous ticket sales of Taylor Swift’s concert tour.
Bloomberg reported that the lawsuit is expected to be filed in the Southern District of New York on Thursday.
The lawsuit underscores the aggressive approach of President Joe Biden’s antitrust regulators as they seek to create more competition in a wide range of industries, from Big Tech to health care and food. It also shows the strength and anger of concertgoers and Swifties, the nickname of Swift’s fans.
Live Nation came under fire in 2022 after Ticketmaster mishandled ticket sales for Swift’s 2023 tour. Ticketmaster was blindsided, canceling some sales plans and sending potential buyers into online queues for as long as eight hours.
Some Swifties said Ticketmaster repeatedly rejected them while they waited to purchase. The service has complained that it has been targeted by bots and scalpers, but concertgoers have also complained about high prices and poor service.
U.S. senators in a January 2023 hearing called after the ticketing fiasco criticized Live Nation’s lack of transparency and failure to block ticket purchases using bots.
In the lawsuit, which will be filed Thursday, the Justice Department’s options range from asking the company to stop the illegal behavior, a common request, to asking a court to stop it, which is rare.
The lawsuit was filed after the Justice Department approved Ticketmaster’s controversial merger with Live Nation in 2010, with conditions designed to prevent the combined company from harming competition.
In 2020, the court extended most of its oversight of the merger until 2025 because it said Ticketmaster had retaliated against stadiums and arenas that other ticketing companies had chosen to use.
Live Nation did not immediately respond to requests for comment. The company has said in the past that it is confident its business practices are legal and that the investigation was prompted by complaints from competitors, including resellers.
Live Nation shares fell 7% in after-hours trading.
The Justice Department did not immediately respond to a Reuters request for comment.