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NEW YORK (AP) — The antitrust trial against Live Nation and Ticketmaster is set to proceed on Monday as over 30 states push forward, following unsuccessful negotiations this week aimed at expanding a tentative settlement brokered by the Justice Department.
During a Friday hearing in New York, attorneys revealed that seven states, all led by Republican attorneys general—Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina, and South Dakota—have opted to align with the Justice Department in settling with the live entertainment powerhouse.
The remaining 32 states remain steadfast in their pursuit to persuade a jury that Live Nation Entertainment, along with its ticketing arm Ticketmaster, is stifling competition and inflating prices for concertgoers. They allege that the company employs tactics such as threats and retaliation to dominate nearly all facets of the industry, from concert promotion to ticket sales.
In response, Live Nation and Ticketmaster argue that they do not hold a monopoly over the industry. They assert that pricing and ticket sales strategies are determined by artists, sports teams, and venues themselves.
The jury had already been presented with testimony when the U.S. Justice Department announced its agreement with Live Nation. The proposed deal promises to reduce costs for the public by granting competitors access to certain ticket markets currently monopolized by Live Nation.
Many states criticized the deal, saying the federal government failed to get enough concessions from the company.
Testimony was put on hold for a week for more settlement negotiations, but with no breakthrough in sight, Judge Arun Subramanian said Friday the trial would resume.
The judge also ruled against Live Nation’s objection to trial exhibits in which a company employee several years ago tells another worker that the prices Live Nation charges to access the VIP area of a Tampa, Florida, amphitheater are “outrageous,” that customers paying the fees “are so stupid” and that “I almost feel bad taking advantage of them” before writing, “BAHAHAHAHAHA.”
Live Nation had argued against their inclusion in the trial, saying the employees were making “passing references to non-ticket ancillary products — such as VIP club access, premier parking, or lawn chair rentals — sold to concertgoers at two amphitheaters” in Florida and Virginia.
The judge said the overall fan experience is relevant to the relationship between performers and their customers and some artists might not want to perform if fans were being charged too much for lawn chairs or other amenities.
Subramanian said it was no different than the harm that might occur to the film industry if movie theaters began charging $50 for concessions such as soda, candy and popcorn.
At a hearing on Tuesday, Live Nation attorney Dan Wall told the judge that the chance all states would settle their claims this week was “about zero.”