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A jury has determined that Live Nation and its subsidiary, Ticketmaster, improperly controlled major concert venues, marking a defeat for the company in a legal battle initiated by numerous U.S. states and the District of Columbia. The decision highlights the company’s monopolistic influence in the live entertainment sector.
After four days of deliberation, a federal jury in Manhattan delivered its verdict on Wednesday in a high-profile case that has drawn considerable public attention. The trial provided a rare glimpse into the operations of an entity that wields significant power over live events both domestically and internationally.
Jeffrey Kessler, one of the attorneys involved, expressed his satisfaction with the outcome, declaring, “It’s a great day for antitrust law,” as he exited the courthouse.
Earlier in the proceedings, the judge instructed the legal teams to collaborate with the United States in drafting a joint letter. This document is expected to outline a proposed timetable for motions and detail how the remedies phase of the case will proceed, with a submission deadline set for late next week.
During the trial, Live Nation’s CEO, Michael Rapino, took the stand, facing inquiries about various issues, including the notorious ticketing crisis for Taylor Swift’s 2022 tour. Rapino attributed the fiasco to a cyberattack.
The proceedings also aired a Live Nation employee’s internal messages to another employee declaring some prices “outrageous,” calling customers “so stupid” and boasting that the company was “robbing them blind, baby.” The employee, Benjamin Baker, who has since been promoted to a position as a ticketing executive, apologetically testified that the messages were “very immature and unacceptable.”
Live Nation Entertainment owns, operates, controls booking for or has an equity interest in hundreds of venues. Its subsidiary Ticketmaster is widely considered to be the world’s largest ticket-seller for live events. Its lawyers did not immediately comment as they left the courthouse, but said a statement would be issued shortly.
The verdict could cost Live Nation and Ticketmaster hundreds of millions of dollars, just for the $1.72 per ticket that the jury found Ticketmaster had overcharged consumers in 22 states. The companies could also be assessed penalties. In addition, sanctions could result in court orders that they divest themselves of some entities, including venues such as amphitheaters that they own.
The civil case, initially led by the U.S. federal government, accused Live Nation of using its reach to smother competition – by blocking venues from using multiple ticket sellers, for example.
“It is time to hold them accountable,” Jeffrey Kessler, an attorney for the states, said in a closing argument, calling Live Nation a “monopolistic bully” that drove up prices for ticket buyers.
Live Nation insisted it’s not a monopoly, saying that artists, sports teams and venues decide prices and ticketing practices. A company lawyer insisted its size was simply a function of excellence and effort.
“Success is not against the antitrust laws in the United States,” attorney David Marriott said in his summation.
Ticketmaster was established in 1976 and merged with Live Nation in 2010. The company now controls of 86% of the market for concerts and 73% of the overall market when sports events are included, according to Kessler.
Ticketmaster has long drawn ire from fans and some artists. Grunge rock titans Pearl Jam battled the business in the 1990s, even filing an anti-monopoly complaint with the U.S. Department of Justice, which declined to bring a case then.
Decades later, the Justice Department, joined by dozens of states, brought the current lawsuit during Democratic former President Joe Biden’s administration. Days into the trial, Republican President Donald Trump’s administration announced it was settling its claims against Live Nation.
The deal included a cap on service fees at some amphitheaters, plus some new ticket-selling options for promoters and venues – potentially allowing, but not requiring, them to open doors to Ticketmaster competitors such as SeatGeek or AXS. But the settlement doesn’t force Live Nation to split from Ticketmaster.
A handful of the states joined the settlement. But more than 30 pressed ahead with the trial, saying the federal government hadn’t gotten enough concessions from Live Nation.
New Jersey Attorney General Jennifer Davenport said in a release that the “landmark jury verdict in our case against Live Nation confirms what we have said since the start of our case: For far too long, Live Nation has illegally profited from its monopoly at the expense of hardworking New Jerseyans.”
“Live Nation’s illegal, anti-competitive practices have caused immense damage in our state, exploiting consumers by driving up the price of tickets and making it harder for fans to see their favorite artists,” she added.
New York Attorney General Letitia James called the verdict “a landmark victory in our ongoing work to protect our economy and New Yorkers’ wallets from harmful monopolies.”
After the victory, Kessler would not say specifically what the states will seek in the next phase of the litigation, which was expected to involve another lengthy proceeding with witnesses before penalties are decided on.
But he celebrated the moment.
“It’s a great day for consumers. This case is a tribute to the 34 states and the District of Columbia who carried this case forward,” he said.
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