Could Ticketmaster's Taylor Swift Fiasco Result in a Federal Probe?

Ticketmaster on Thursday announced it was canceling the public sale of tickets to Taylor Swift's Eras tour following a pre-sale rush that resulted in hours-long wait times and the company's website crashing.

The pre-sale chaos resulted in a huge backlash from Swift fans. But Ticketmaster isn't only facing consumer outcry. Tennessee Attorney General Jonathan Skrmetti on Wednesday announced he is launching an investigation into Ticketmaster. Multiple members of Congress have also spoken out against the company following the Swift fiasco that began Tuesday, which raises the question: Could Ticketmaster soon be subjected to a federal probe?

"Daily reminder that Ticketmaster is a monopoly, it's merger with Live Nation should never have been approved, and they need to be reigned in," Democratic Representative Alexandria Ocasio-Cortez of New York tweeted Tuesday. "Break them up."

Fellow Democratic Representatives Bill Pascrell Jr. of New Jersey and David Cicilline of Rhode Island also posted critical messages about Ticketmaster on Twitter. In his messages, Cicilline shared a letter he and other lawmakers had drafted last year that called on the Department of Justice to investigate Ticketmaster/Live Nation.

Julie Rendelman, a New York City-based defense attorney and former prosecutor, explained some of the accusations that have been made about Ticketmaster.

"Ticketmaster has dominated concert ticket distribution for years, further strengthening its position when it merged with Live Nation. Complaints regarding its monopoly over the industry have continued to grow with accusations of possible antitrust violations," Rendelman told Newsweek.

Rendelman added, "After all, if there is no competition there may be little motivation to control pricing and ensure quality. The Taylor Swift debacle may be just what is needed to open the doors to a more expanded governmental investigation into this issue. I, for one, was lucky enough to get tickets...But not before having the site crash three times."

During his press conference, Skrmetti said of the Swift ticketing, "If it's a consumer protection violation and we can find exactly where the problems are, we can get a court order that makes the company do better."

Neama Rahmani, president of West Coast Trial Lawyers, told Newsweek the DOJ could be next in going after Ticketmaster.

"The Department of Justice's Antitrust Division may follow suit and open an investigation into Ticketmaster and Live Nation. The companies have long been criticized for abusing their significant market power and forcing venues to use their service," Rahmani said. "Members of Congress, including the chairman of the House Antitrust Subcommittee, have called Ticketmaster-Live Nation a monopoly, while others like AOC have gone so far as to call for the companies to be broken up."

When Ticketmaster and Live Nation merged in 2010, the DOJ imposed conditions meant to preserve and promote ticketing competition. In 2019, the department found Live Nation had violated that decree, and the agreement with the DOJ was extended and strengthened to make it more clear that the company could not threaten venues from using rival ticketing services.

Swift fans are notoriously vocal on most matters, and those who weren't able to buy tickets to the Eras tour have posted livid messages on social media. Their intense displeasure with Ticketmaster has not gone unnoticed, and the overwhelming public blowback could result in the DOJ taking another look at Ticketmaster/Live Nation.

"Swifties are unhappy, President Biden has promised to crack down on so-called 'junk fees,' and it's just a matter of time before artists speak up against Ticketmaster like Pearl Jam did, which will put even more pressure on regulatory agencies to act," Rahmani said, referencing the grunge band's battle against Ticketmaster in the 1990s.

He continued, "The Justice Department is operating under a consent decree, but state Attorney Generals are not, and I expect Ticketmaster and Live Nation to be the target of antitrust enforcement at both the state and federal level."

Newsweek reached out to Ticketmaster for comment.