Proactive Investors - Ticketmaster’s owner is reportedly set to be hit with an antitrust lawsuit by the US Department of Justice, prompting speculation over a forced breakup.
According to the Washington Post (NYSE:POST), the case against Live Nation Entertainment Inc (NYSE:LYV) could be filed as early as Thursday, sending its shares down almost 8% in pre-market trading.
This is set to allege that the ticket seller and live venue owner has deliberately squashed competition in a bid to cut consumer choice and drive up prices.
Live Nation had been under investigation by the department’s antitrust division for several years, which CBS previously reported centered around the Ticketmaster unit.
Several state attorneys are set to join the department in its claim against Live Nation, reports said.
Live Nation Entertainment was formed in 2010 through a merger between Live Nation and Ticketmaster.
Concerns had been raised over its potential dominance in the live entertainment industry by the Department of Justice at the time, though the deal was ultimately approved.
Historically, the department has sought to force the breakup or changes of companies after suing over competition issues.
Live Nation fell 6.3% to US$95 in pre-market trading on the news.