FTC probes Ticketmaster's failure to curb ticket bots

In the United States, the Federal Trade Commission (FTC) has launched an investigation into Ticketmaster, a subsidiary of Live Nation Inc., to determine whether it has taken sufficient measures to prevent the illegal resale of tickets by automated bots. This investigation is reportedly at an advanced stage, and officials are considering filing a case against Ticketmaster within weeks. The scrutiny of the company intensified following the bot-related issues faced during Taylor Swift's concert ticket sales in late 2022, where many fans encountered difficulties purchasing tickets. This is not the first legal challenge for Ticketmaster, which is already embroiled in litigation with the Department of Justice and various state attorneys general seeking to dismantle its monopoly. The BOTS Act, enacted in 2016 and aimed at curbing ticket scalping, specifically prohibits the use of bots to bypass ticket limits for high-demand events. The FTC's investigation finds its roots in the regulatory environment shaped by past leadership changes. Under former FTC Chair Lina Khan's oversight, the agency began to scrutinize the practices of Ticketmaster, and interest in tackling automation fraud gained momentum during the Trump administration. Both the executive and legislative branches of government have expressed concerns about large-scale ticket reselling and its impact on consumers. The Trump administration even issued an executive order directing the FTC to prioritize enforcement of the BOTS Act, emphasizing the need for rigorous examination of companies like Ticketmaster that have faced mounting criticism from consumers across various sectors. Ticketmaster has consistently defended its practices, claiming to have invested more in addressing scalping issues than its competitors combined. However, criticisms surrounding their influence over ticket sales and resentment from fans have persisted. The public’s frustration grew significantly in wake of various high-profile concert sales where bots absorbed most tickets, leading to perceived monopolization of the ticket market. Following the controversy of Taylor Swift's concert, Ticketmaster's intentions to lobby for new schemes seemed more like a move to tighten its grip on the market, sparking further debate regarding its practices and the regulation of ticket sales by automated means. The legal challenges for Ticketmaster could escalate if the FTC opts to proceed with an antitrust case. Possible penalties for violations under the BOTS Act could amount to billions of dollars, as fines can reach $53,000 per incident. Amid ongoing and newly raised concerns about its business practices, Ticketmaster faces a pivotal moment where the agency's actions may just shape the future of ticket sales both online and offline.