Finance

Live Nation’s share price falls following antitrust lawsuit reports

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Live Nation Entertainment’s share price fell to $89.99 (£72/€85) following reports that the US Department of Justice was planning to open an antitrust lawsuit as early as next month.

Reports emerged earlier this week that the US DOJ was set to file a lawsuit next month, with the Wall Street Journal citing people familiar with the matter. The DOJ will reportedly claim that Live Nation has leveraged its dominance in the market to undermine competition. 

Ticketmaster and Live Nation merged in 2010 under a settlement agreement. In 2019, the DOJ found that Live Nation had breached this agreement, and forced the group to agree to new terms.

According to UK financial services company Hargreaves Lansdown, Live Nation Entertainment’s year high was roughly $107 per share. While the reports have inspired a fall to around $90, it is not quite the year low of $64.97. 

Additionally, Marketwatch reported that yesterday’s price was the stock’s fifth consecutive day of losses.

The Fan Fairness Coalition (FFC), a bipartisan non-profit organisation, responded to the earlier reports of the antitrust lawsuit against Live Nation and Ticketmaster, and highlighted the need for action to protect fans. 

A statement read: “Reports that the DOJ will soon file an antitrust lawsuit against Live Nation-Ticketmaster demonstrates the severity of this situation and the need for action to protect fans. This will be a critical step in holding Ticketmaster and Live Nation accountable for monopolistic, anticompetitive business practices that have eroded free market competition in the live event ticketing industry and hurt millions of fans.

“The FFC has worked to help tens of thousands of these fans make their voices heard in a meaningful way by urging federal officials to break up a platform that has dominated ticketing for far too long. We applaud this news and look forward to reviewing the complaint once it is filed.”