(Reuters) – The U.S. Justice Department is expected to file an antitrust lawsuit against Live Nation Entertainment (NYSE:) as early as next month, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Live Nation subsidiary Ticketmaster has come under widespread criticism for hosting Taylor Swift’s 2022 “Eras” tour, prompting demands that the two companies be investigated for harming consumers through their dominance of the live events market.
During a hearing in January 2023, US senators criticized Live Nation’s lack of transparency, fee structure and failure to block ticket purchases using bots.
Joe Berthold, Live Nation’s president and chief financial officer, apologized to Swift fans at the hearing, but Ticketmaster claims bots used by scalpers are to blame for the disaster.
The Wall Street Journal reported that the Justice Department’s lawsuit will allege that Live Nation used its dominant share of the live event ticket market in a way that undermines competition.
Live Nation did not respond to Reuters’ request for comment. A Justice Ministry spokesman declined to comment.
Live Nation shares fell about 6% in extended trading.
Concert-goers were wary in 2010 when federal regulators refused to block Live Nation’s merger with Ticketmaster under a settlement.
In 2019, the Justice Department accused Live Nation of intimidating ticket agents into using Ticketmaster and reached a revised agreement that extended restrictions on the company until 2025.