A Federal court jury in New York recently held that Live Nation and its subsidiary, Ticketmaster, had an illegal monopoly on concert ticket sales. Live Nation/Ticketmaster used its dominant position in the market to make things more difficult for its competitors.
The witnesses in the trial included Live Nation head Michael Rapone and Ben Lovett from the group Mumford & Sons.
Over 30 states sued Ticketmaster, claiming that it dominated major concert venue sales and maintained high prices with their anticompetitive practices in large entertainment venues.
Concert goers have long complained about exorbitant ticket prices. This recent verdict in the antitrust trial against Live Nation could mean lower ticket prices in the future but it does not appear it will happen immediately.
One week after the trial began on March 2, the federal government entered into a $280 million settlement. Some states agreed to participate in the settlement which must still be approved by the judge. However, over 30 states decided to continue with their lawsuit in court.
The jury concluded that Ticketmaster overcharged $1.72 per concert ticket in 21 states and Washington D.C. due to Live Nation’s anticompetitive actions.
The acting assistant attorney general for the Justice Department’s antitrust division, Omeed Assefi, stated the verdict was “a fantastic outcome for the American people... DOJ and some states settled their cases and got instant relief. The remaining states received a liability finding and will now move on to the next phase of a remedies trial. Everyone but Live Nation wins with this scenario.”
The judge in the case, Arun Subramanian, will be the person who decides what the remedies are. It could be divestments by Live Nation of some of its companies or ordering Live Nation and Ticketmaster (they merged in 2010) to separate. Live Nation will also be required to pay back millions of dollars in overcharges.
During the trial, Live Nation argued that it was not a monopoly and stated that the jury’s verdict “is not the last word on this matter” as there are motions pending which may decide whether the rulings on liability and damages will stand. Live Nation also stated that it should not have to pay over $450 million in damages.
Ticketmaster is the largest ticketer of live events in the world. During the trial, Jeffrey Kessler, an attorney for the states, testified that Ticketmaster has an 86 percent share of the ticket sales market at “major concert venues” which he said are the 250 U.S. amphitheaters and arenas that can accommodate 8,000 people and have more than 10 concerts a year. Live Nation contends that their market share is only 44 percent if smaller venues are considered.
Ticket prices have skyrocketed in the last few decades. According to Bloomberg, as Streaming income became a less profitable source of income for musicians, artists have turned to touring and are charging a higher base cost. In addition, live events boomed after the pandemic.
GLENN T. LITWAK is a veteran entertainment attorney based in Santa Monica, CA. He has represented platinum selling recording artists, GRAMMY-winning music producers, hit songwriters, management and production companies, music publishers and independent record labels. Litwak is also a frequent speaker at music industry conferences around the country, such as South by Southwest and the Billboard Music in Film and TV Conference. Litwak has been selected as a “Super Lawyer” by Super Lawyer magazine for 2022-2025. Email Litwak at gtllaw59@gmail.com or visit glennlitwak.com.
This article is a very brief overview of the subject matter and does not constitute legal advice.
