Live Nation (LYV) saw its shares drop about 7% on Tuesday following reports of a possible antitrust lawsuit by the Department of Justice (DOJ). The Department of Justice is reportedly investigating Live Nation, Ticketmaster’s parent company, for alleged anti-competitive behavior in the marketplace.
The merger between Live Nation and Ticketmaster in 2010 has come under scrutiny due to concerns about high ticket fees and accusations of monopolistic practices. In 2020, the Justice Department expanded Live Nation’s consent decree, which had been put in place to prevent the company from forcing venues to use Ticketmaster, after finding evidence of violations.
Capitol Hill has also taken interest in Live Nation’s practices, particularly after controversies surrounding Taylor Swift concert tickets. Some lawmakers have suggested breaking up the company, although analysts say this may not solve problems with the secondary banknote market.
Despite reporting strong financial results, including a 36% increase in revenue and doubling of earnings per share in fiscal 2023, Live Nation stock saw a significant drop. Shares are down about 1% since the beginning of the year.
Live Nation has not yet responded to requests for comment on the reports.
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