Live Nation, Ticketmaster Criticize FTC Lawsuit as Overreach, Seek Dismissal
Lawyers representing Live Nation and Ticketmaster have submitted a motion to dismiss a lawsuit initiated by the Federal Trade Commission (FTC) and seven states. Filed on January 6, this motion contends that the lawsuit is an example of “agency overreach” and misapplies the Better Online Ticket Sales (BOTS) Act enacted in 2016.
Overview of the FTC Lawsuit
The lawsuit alleges that Live Nation and Ticketmaster have allowed scalpers to exceed their purchasing limits. This practice has reportedly facilitated the resale of tickets at significantly inflated prices. According to the companies’ legal team, the BOTS Act aims to help ticket issuers, like Ticketmaster, which strive to protect fans from ticket scalping.
Key Arguments from Live Nation and Ticketmaster
- The companies argue that applying the BOTS Act against a ticket issuer for operating a resale platform is unprecedented.
- They acknowledge ongoing challenges with scalpers who utilize technology to acquire large quantities of tickets.
- Scalpers commonly create multiple accounts to evade limitations or employ software to bypass verification systems.
Live Nation’s motion emphasizes that the company acts as an intermediary in person-to-person ticket sales and is not a reseller itself. This distinction is crucial in their defense against the charges brought forth by the FTC.
Additional Legal Challenges for Live Nation
In addition to the FTC lawsuit, Live Nation is facing scrutiny from the Biden administration’s Department of Justice for alleged monopolistic practices in the live events industry. Former Attorney General Merrick Garland claimed that Live Nation engages in unlawful conduct that harms fans, artists, and smaller promoters.
Market Impact and Stock Performance
Live Nation’s stock price reflects the ongoing controversies. As of the latest market close, shares were valued at $144. The company’s stock saw a significant increase following the November 2024 re-election of former President Trump. Live Nation CFO Joe Berchtold remarked on the shifting regulatory climate under the current administration.
Recent Changes to Leadership
In May 2023, Live Nation appointed Richard Grenell, a Trump appointee and current overseer of the Kennedy Center for the Performing Arts, to its board of directors. This decision came after Trump issued an executive order directing the FTC to strictly enforce the BOTS Act.
Next Steps in Legal Proceedings
A hearing regarding the motion filed by Live Nation and Ticketmaster is scheduled for February 19. The outcome of this lawsuit could have significant implications not only for the companies involved but also for the ticket resale market as a whole.
