NEW YORK – A jury has recently ruled that the concert giant Live Nation and its ticket-selling subsidiary, Ticketmaster, hold a harmful monopoly over major concert venues. This significant decision comes from a lawsuit involving numerous U.S. states, highlighting concerns about the companies’ dominant position in the live entertainment industry.
The Manhattan federal jury took four days to deliberate before reaching their verdict on Wednesday. This closely watched case has offered fans a unique insight into the operations of a company that exerts considerable influence over live events in the United States and beyond.
At the conclusion of the trial, the judge instructed both parties to collaborate with the United States to draft a joint letter outlining a schedule for future motions and the remedies phase of the case. This letter is expected to be submitted by late next week.
Live Nation Entertainment is a major player in the concert scene, owning, operating, or having a financial stake in hundreds of venues. Ticketmaster, which is widely recognized as the largest ticket seller for live events globally, is a key part of this operation. As the lawyers exited the courthouse, they indicated that a statement regarding the verdict would be forthcoming.
The jury’s decision could potentially cost Live Nation and Ticketmaster hundreds of millions of dollars, especially considering they found that Ticketmaster overcharged consumers by $1.72 per ticket in 22 states. Beyond financial penalties, the companies might face court orders that could require them to divest some of their assets, including venues like amphitheaters that they own.
The civil case was initially spearheaded by the U.S. federal government and accused Live Nation of using its influence to stifle competition. For instance, they allegedly prevented venues from utilizing multiple ticket sellers, limiting choices for consumers.
“It is time to hold them accountable,” argued Jeffrey Kessler, an attorney representing the states involved in the lawsuit. He described Live Nation as a “monopolistic bully” that has been driving up prices for fans seeking tickets.
In contrast, Live Nation maintains that it is not a monopoly and that prices and ticketing decisions are determined by artists, sports teams, and venues rather than the company itself. During the trial, a company lawyer contended that their size is simply a result of their dedication and success in the industry.
“Success is not against the antitrust laws in the United States,” emphasized attorney David Marriott during his closing remarks.
Ticketmaster was founded in 1976 and merged with Live Nation in 2010. Currently, it holds an impressive 86% share of the concert ticket market and 73% when including sports events, according to Kessler’s statements in court.
Ticketmaster has faced criticism from fans and artists for years. Notably, the iconic grunge band Pearl Jam challenged the company back in the 1990s, even filing an antitrust complaint with the U.S. Department of Justice, although the case did not advance at that time.
Fast forward to recent years, and the Justice Department, along with several states, initiated the current lawsuit during the administration of former President Joe Biden. Interestingly, shortly after the trial began, the Trump administration announced a settlement of its claims against Live Nation, which included a cap on service fees at certain venues and options for promoters and venues to consider alternatives to Ticketmaster, like SeatGeek or AXS. However, this settlement did not require Live Nation to separate from Ticketmaster.
While some states chose to accept the settlement, over 30 others proceeded with the trial, arguing that the federal government had not secured sufficient concessions from Live Nation.
The trial even brought Live Nation CEO Michael Rapino to the witness stand, where he faced questions regarding the company’s controversial handling of ticket sales, including the much-publicized issues surrounding Taylor Swift’s ticket launch in 2022, which Rapino attributed to a cyberattack.
Furthermore, the proceedings revealed internal communications from a Live Nation executive who referred to some ticket prices as “outrageous” and expressed a dismissive attitude toward customers, stating they were being “robbed blind.” The executive, Benjamin Baker, later expressed regret for those comments, calling them “very immature and unacceptable.”
