Citing anticompetitive exclusive promotion, exclusive ticketing and radius clauses, the group seeks to breakup the companies, void contracts with artists and venues, and secure compensation for consumers.
The Consumers Council of Canada has filed an application with the Canadian Competition Tribunal, seeking permission to sue Ticketmaster and its parent company, Live Nation.
The Canadian consumer group’s claim alleges that the merged live entertainment companies force artists and venues to accept anti-competitive exclusive promotion, exclusive ticketing and radius clauses. If they don’t comply, they risk losing access to the company’s wide network of connections.
The council claims that Live Nation Entertainment has become gatekeepers to the live music industry, controlling venue and artists' profits while increasing ticket fees for fans.
The application filing follows new additions to the Canadian Competition Act, which allow affected parties and consumer groups to challenge anti-competitive disputes. If successful, the consumer advocacy group will order Live Nation to void terms in their contracts with artists and venues, plus “substantial compensation” for Canadian consumers, artists and venues.
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Since 1994, the consumer advocacy group has been a vocal presence for consumer protection. They cite a long-standing history of reported anti-trust issues in the live music space, from Pearl Jam’s complaint to the U.S. Department of Justice against Ticketmaster in 1994 to Taylor Swift’s Eras Tour ticket rush in 2022, which left many frustrated fans without tickets.
“Canadian consumers have had enough,” says Don Mercer, president of the CCC and former deputy commissioner of the Competition Bureau, in a public statement.
He continues: “Going to see your favourite musician perform live used to be something that ordinary Canadians could easily afford to do. Now it’s become a luxury item for many because of the stranglehold Live Nation and Ticketmaster have.”
The crux of the council’s objective is fairly straightforward: halting Live Nation’s ability to pressure artists and venues into anti-competitive terms and contracts that ramp up costs for businesses and consumers. The group seeks to force Live Nation to divest itself of Ticketmaster and orders voiding terms in their contracts with artists.
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In a statement to Billboard Canada, Live Nation Entertainment say they plan to fight the filing.
"The filing, brought by a private entity, is based on misinformation about how the live entertainment industry works and we will defend against these baseless allegations," they write. "We continue to work with the industry, our partners, and governments on solutions that give artists more control while enforcing existing anti‑bot and consumer protection laws.”
Last week, the Quebec Superior Court approved a class action lawsuit against Ticketmaster, citing the implementation of excessive, unreasonable, abusive and disproportionate” fees that don’t match up with the service being provided.
It’s happening south of the border, too. Last year, the U.S. Federal Trade Commission (FTC) filed a lawsuit against Ticketmaster and Live Nation, accusing them of "tacitly coordinating" with resellers. It was dismissed earlier this month, with Ticketmaster calling the class action an “egregious overreach.”
If the council’s claim is brought to court, it will be the first of its kind. Previously, only competitors directly affected in their business could pursue tribunal claims, or if cases were initiated by the Commissioner of Competition. The tribunal has never ordered a company to split up.
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“This change finally gives consumers the opportunity to step forward and demand compensation for monopolistic and other conduct,” Mercer says. “It is no coincidence that our case against Live Nation and Ticketmaster is one of the first to be brought under this new regime.”
While the case is still in its early stages, it has the potential to amass a lot of attention across the Canadian live music industry.
