Taylor Swift fans are suing Ticketmaster after ticket sales for her concert tour had issues. The US Justice Department is investigating Ticketmaster for potentially driving out competitors and raising prices. Bloomberg experts discuss Ticketmaster's troubles and the push in Washington to regulate big companies.
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Quick takeaways
Ticketmaster's alleged monopoly status in the ticketing market has raised concerns about antitrust violations.
The Biden administration has taken an active stance against the consolidation of corporate power across various industries, including technology, manufacturing, and publishing.
Deep dives
Ticketmaster's Botched Sale of Taylor Swift Tickets
Ticketmaster faced backlash after a presale for Taylor Swift's concert tour went awry. The company's Ticketmaster verified fan program, aimed at preventing ticket bots from accessing tickets, failed to work properly, leaving many fans unable to purchase tickets. Thousands of frustrated fans took to social media, and it was alleged that bots still managed to purchase tickets, which were later resold at exorbitant prices. The incident drew the attention of the U.S. Justice Department, which has been investigating Ticketmaster for potential antitrust violations. Critics argue that Ticketmaster's dominant position in the ticketing market stifles competition and leads to higher prices for consumers.
Ticketmaster's Monopoly and Antitrust Laws
Ticketmaster's alleged monopoly status in the ticketing market has raised concerns about antitrust violations. While Ticketmaster claims to represent only around 30% of ticket sales, it is often the primary seller for premium tickets and holds significant influence over the industry. The U.S. Department of Justice has previously investigated Ticketmaster and Live Nation, its parent company, and uncovered violations of a settlement agreement designed to ensure fair competition. Some members of Congress have called for renewed investigations, suggesting that Ticketmaster's dominance could be deemed a monopoly and subject to legal action.
Understanding Monopolies and Antitrust Laws
A monopoly is a dominant company with exclusive power over a market, although no specific market share qualifies as a monopoly. In the United States, being a monopoly itself is not illegal. However, companies engaging in illegal practices to maintain their monopoly, such as driving out competitors or using predatory pricing, can face legal consequences. Antitrust laws aim to promote competition, benefiting consumers by fostering innovation, lower prices, and higher product quality. Prosecuting monopolistic behavior requires evidence of illegal conduct and a successful court case. Antitrust laws are evolving to address new challenges posed by digital companies and online platforms.
The Biden Administration's Stance on Corporate Power
The Biden administration has taken an active stance against the consolidation of corporate power across various industries, including technology, manufacturing, and publishing. The administration has expressed concerns about the market dominance of big tech companies, such as Google and Apple, and initiated investigations into their practices. With respect to Ticketmaster, the administration's interest in investigating its potential antitrust violations aligns with broader efforts to address monopolistic behavior and promote fair competition. The outcome of these investigations and potential legal actions against Ticketmaster and other dominant companies will shape the enforcement and interpretation of antitrust laws in the digital age.
A group of Taylor Swift fans is suing Ticketmaster, the big live event ticket provider, after sales for her upcoming concert tour went haywire. It’s also drawn the attention of the US Justice Department. The government is investigating whether Ticketmaster is using its dominance in ticket sales to drive out competitors and drive up prices.
And Ticketmaster isn’t the only big company in the government’s sights. The Biden administration has taken an activist stand against the consolidation of corporate power in tech and other industries..
Sara Forden, who leads Bloomberg’s coverage of corporate influence in Washington, and Leah Nylen, a reporter who writes about antitrust, join this episode to talk about Ticketmaster’s troubles– and a renewed push in Washington to rein in big companies.