A New York jury has ruled that concert giant Live Nation and its subsidiary Ticketmaster maintained a harmful monopoly over major concert venues, delivering a defeat to the company in a lawsuit brought by dozens of states in the United States. The Manhattan federal jury deliberated for four days before reaching its decision on Wednesday, offering a rare glimpse into the inner workings of a business that dominates the live entertainment industry in the US and internationally.
At the conclusion of the proceedings, the judge instructed lawyers from both sides to coordinate with “the United States” to submit a joint letter proposing a schedule for motions and the remedies phase of the case. Live Nation Entertainment owns, operates, controls booking for, or holds equity interests in hundreds of venues, while its Ticketmaster subsidiary is widely regarded as the world’s largest ticket seller for live events. Company lawyers did not immediately comment upon leaving the courtroom but stated that a formal announcement would be issued shortly.
The verdict could cost Live Nation and Ticketmaster hundreds of millions of dollars, based solely on the $1.72 per ticket overcharge that the jury determined consumers paid in 22 states. The companies may also face additional penalties. Furthermore, sanctions could result in court orders mandating divestiture from certain entities, including owned amphitheaters. The civil case, initially led by the US federal government, accused Live Nation of leveraging its market reach to stifle competition, such as by preventing venues from utilizing multiple ticket sellers.
In his closing argument, states’ attorney Jeffrey Kessler labeled Live Nation a “monopolistic bully” and asserted, “It is time to hold them accountable.” Live Nation maintained that it is not a monopoly, arguing that artists, sports teams, and venues set prices and ticketing practices. Company lawyer David Marriott concluded his summation by stating, “Success is not against the antitrust laws in the United States.”
Ticketmaster was established in 1976 and merged with Live Nation in 2010. According to Kessler, the company now controls 86% of the concert market and 73% of the overall market when including sporting events. Ticketmaster has long drawn criticism from fans and some artists, with grunge rock band Pearl Jam famously challenging the business in the 1990s.
Decades later, the US Department of Justice, alongside dozens of states, filed the current lawsuit during the administration of Democratic former President Joe Biden. Days into the trial, the administration of Republican President Donald Trump announced it had settled its claims against Live Nation. The settlement included caps on service fees at some amphitheaters and new ticket-selling options for promoters and venues but did not compel Live Nation to separate from Ticketmaster.
A handful of states joined the settlement, but over 30 proceeded with the trial, contending that the federal government had not secured sufficient concessions from Live Nation. The trial featured testimony from Live Nation CEO Michael Rapino, who was questioned about the company’s 2022 Taylor Swift ticket debacle, where overwhelming demand for pre-sale tickets caused major disruptions on Ticketmaster. Rapino attributed the issues to a cyberattack.
The proceedings also revealed internal messages from a Live Nation executive, Benjamin Baker, in which he described some prices as “outrageous,” referred to customers as “so stupid,” and boasted that the company was “robbing them blind, baby.” Baker testified apologetically, acknowledging that the messages were “very immature and unacceptable.”
Source: www.aljazeera.com