The antitrust trial involving Live Nation Entertainment and its subsidiary, Ticketmaster, resumed Monday in a New York federal court after settlement talks failed to reach an agreement with most states. Seven states—Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina, and South Dakota—have joined a tentative settlement reached by the Justice Department.
Key Takeaways
The antitrust trial against Live Nation Entertainment and Ticketmaster resumed Monday in New York federal court after settlement talks failed to reach an agreement with most states. Seven states have joined the Justice Department's tentative settlement, while 36 states continue their case alleging monopolistic practices.
- Trial resumes with 36 states continuing antitrust claims against Live Nation and Ticketmaster
- Seven states join DOJ settlement but remain in trial until final agreements are signed
- States allege companies control industry through threats and retaliation, driving up prices for fans
- Live Nation denies monopolizing the industry, asserting artists and venues set prices
The remaining 32 states plan to continue their case against Live Nation and Ticketmaster, alleging that the companies are squelching competition and driving up prices for fans through threats, retaliation, and other tactics. The states claim these practices control virtually every aspect of the industry, from concert promotion to ticketing. However, the companies deny monopolizing the industry, asserting that artists, sports teams, and venues set prices and decide how tickets are sold.
The trial was interrupted this week when the Justice Department announced a settlement with Live Nation that would allow competitors like SeatGeek or StubHub to offer tickets to its events. The deal also includes capping ticketing service fees at 15% and divesting exclusive booking agreements with 13 amphitheaters, along with a $280 million settlement fund for state damages claims.
Judge Arun Subramanian ruled against Live Nation's objection to trial exhibits that include derogatory comments from a company employee about concertgoers. The judge deemed the overall fan experience relevant to the relationship between performers and their customers, comparing it to the harm that might occur in the film industry if movie theaters began charging exorbitant prices for concessions.
As testimony resumed Monday, an attorney for the remaining states questioned Jay Marciano, the chief executive of AEG Presents, which is Live Nation's chief competitor. Marciano testified that his company has trouble overcoming exclusive contracts used by Live Nation and Ticketmaster to dominate the industry in the U.S. He noted a more competitive environment exists in Europe, where consumers pay 15% fees on tickets rather than the 25% it costs concertgoers in the United States.
Later in the day, Robert Roux, Live Nation’s president of live concerts, described his employer as an “artist-first company” that does 90% of shows in smaller venues. He testified about the high-risk, low-margin nature of the business and the challenges posed by competition from players like AEG.
Numerous states criticized the DOJ's settlement deal with Live Nation, saying it failed to get enough concessions from the company.
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