According to those with knowledge of the situation, the U.S. Justice Department is conducting a criminal antitrust investigation into how businesses responded to widespread music cancellations at the start of the pandemic in 2020.
According to the people who asked not to be identified during the personal inspection, the research is focused on whether Live Nation Entertainment Inc., Live Nation Entertainment Inc., and AEG Presents Inc. improperly colluded on payment plans for canceled recitals and dealt with artists to reduce losses. Some of the people who were detained said that the prosecution has considered bringing charges against Life Nation, its CEO, Michael Rapino, and other companies.
At the start of COVID-19, skills agencies, Live Nation, AEG, and   publicly revealed an industry-wide effort to address the crisis. Some of the people who spoke with the people said that the antitrust investigation of that action started during the Biden administration, but it has gotten more intense since Donald Trump took office. Prosecutors in the DOJ’s competitive division are still conducting interviews and reviewing documents, according to some of the people.
Rapino is one of the most effective executives in the rapidly expanding life music industry, and Live Nation is by far the largest player in this regard. During earlier Republican and Democratic administrations, the business and antitrust regulators have exchanged, but a criminal investigation represents an increase in federal scrutiny.
Legal investigations don’t often lead to charges, and the Justice Department hasn’t been accused of any wrongdoing. Live Nation, AEG, and Rapino are just a few examples.
” It is not outlawed for designer agents, sponsors, and ticketing businesses to work together to address the unprecedented challenges of a global pandemic,” said Live Nation’s executive vice president of business and regulatory politics, Dan Wall. While Live Nation made good faith contributions to this industry effort, we established our own unique guidelines and refund procedures in order to support artists and fans. No one else, including AEG, and we did not collaborate with us. We are proud of our actions in those trying circumstances, and we will vigorously defend any charges that result from this investigation.
Live Nation , shares fell 2.6 % to$ 141.70 in extended trading.
A&# ;Journal ;s representative declined to comment. Rapino and AEG’s spokespeople didn’t respond to requests for comment.
The Civil Antitrust Investigation of Live Nation, a part of the Biden administration, is what led to the Justice Department’s criminal investigation. A 2024 lawsuit filed in 2024 seeks to unwind Live Nation’s 2010 purchase of Ticketmaster and alter the company’s business practices.
Due to the five-year statute of limitations for filing antitrust charges that begin at the conclusion of any alleged conspiracy, prosecutors will need to make a decision soon in this criminal case. Any charging decisions may be hampered by the presence of non-direct competitors in the talent agencies ‘ discussions. Some of the people who are close to the investigation claim that the organizations are not under scrutiny, but their involvement in the industry effort gives them a case to support the claim that any case should be brought under civil, not criminal statutes.
A lightning rod
Since the pandemic, Live Nation  has dramatically recovered. The business generated$ 23.2 % in sales last year, more than twice the total from the previous five years. Its Ticketmaster subsidiary sells tickets for the majority of major live events, while its name-ake concert promotion company handles more of the biggest tours than any of its rivals.
The company has become a lightning rod for criticism due to its influence over the industry. Since Live Nation’s contentious acquisition of Ticketmaster, which became the largest concert promoter in the United States and now operates with the biggest ticketing company, the organization has been criticized for the fees levied on tickets as well as contracts with artists and venues that require them to use Ticketmaster.
While unexpected cancellations, like those brought on by COVID-19, can be expensive for venues hosting live events, concert sales, adjusted for inflation, have increased by a whopping ten percent over the past ten years, and many artists now consider selling concert tickets as a way to make a living.
The organization has stated on numerous occasions that artists control the cost of tickets and that the market is congested.
Fans have become more and more expensive as a result of the rising cost of concert tickets and the difficulty of getting into top tours. Many of these issues are attributable to scalping, according to Live Nation, while also mentioning that high prices for secondary sales of tickets indicate there is a need.
At an investor conference hosted by , JPMorgan , this week, Joe Berchtold, President and CEO, said,” The best thing we can do as the next step is just create a lot of transparency.” We have pushed for a lot of reforms, they say.
Live Nation lawsuit
A group of state attorneys general joined the civil lawsuit titled” Live Nation” and claimed a massive scheme to monopolize the live music industry. Some of the people said that during their review,  , Justice Department , attorneys referred conduct they had discovered to criminal prosecutors in the antitrust division’s office in New York .
Companies that violate the U.S. Â law may face fines of up to$ 100 million for criminal antitrust violations and sentences of up to five years in prison.
The Federal Trade Commission, the Justice Department, and the , the White House, were ordered by the executive branch to vigorously regulate competition in the sector in a March executive order, which stated that it had been “blighted by unscrupulous middlemen”. It didn’t focus on any particular businesses.
In response to the order, the , Justice Department , and the , FTC , issued an information request earlier this month” to identify unfair and anticompetitive practices and conduct in the live concert and entertainment industry.”
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