The Department of Justice on Thursday filed a lawsuit seeking to dismantle Live Nation, the parent company of Ticketmaster, citing alleged antitrust violations.

The lawsuit, which is supported by 30 states, was filed following an extensive DOJ investigation. The probe, initiated in 2022, was intensified by numerous complaints from fans after a problematic rollout of tickets for Taylor Swift’s Eras tour.

“We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators,” Attorney General Garland said in a statement.

“The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster,” he said.

Following the announcement, shares of Live Nation fell by 5% on Thursday morning.

In its defense, Live Nation dismissed the DOJ’s claims as “absurd.”

“The DOJ’s complaint attempts to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry. It blames concert promoters and ticketing companies — neither of which control ticket prices — for high ticket prices,” said Dan Wall, Live Nation’s executive vice president for corporate and regulatory affairs tells CNBC.

“It ignores everything that is actually responsible for higher ticket prices, from increasing production costs to artist popularity, to 24/7 online ticket scalping that reveals the public’s willingness to pay far more than primary tickets cost,” he said.

Live Nation and Ticketmaster merged in 2010, forming a powerful entity in the live event industry. The company manages ticket sales for live entertainment globally and owns and operates more than 265 entertainment venues in North America, including more than 60 of the top 100 amphitheaters, according to the DOJ lawsuit.

The DOJ complaint asserts that Live Nation controls roughly 80 percent or more of the primary ticketing for major concert venues through Ticketmaster.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses Live Nation of maintaining a self-reinforcing business model. The model allegedly involves capturing fees and revenue from concert fans and sponsorships, which is then used to lock artists into exclusive promotion deals, granting them access to key entertainment venues across the country.

The DOJ further claims that Live Nation uses this dominance to secure long-term exclusionary contracts with new concert venues, perpetuating its cycle of control. In addition, Live Nation is accused of threatening financial retaliation against potential competitors and venues that collaborate with rivals and strategically acquiring smaller and regional competitive threats.