NEW YORK (AP) — A jury has found that concert giant Live Nation and its Ticketmaster subsidiary had a harmful monopoly over big concert venues, resulting in a significant loss in a lawsuit filed by numerous U.S. states and the District of Columbia.
A Manhattan federal jury deliberated for four days before reaching its decision, giving consumers a glimpse into the business practices of a company that dominates live entertainment in the U.S. and beyond.
“It’s a great day for antitrust law,” exclaimed attorney Jeffrey Kessler, celebrating the ruling as he left the courthouse.
The case had Live Nation CEO Michael Rapino on the witness stand, where he faced questions about the company's pricing practices, which were spotlighted during the well-publicized Taylor Swift ticket incident in 2022. Rapino attributed the issues to a cyberattack.
Evidence presented in court included internal messages from a Live Nation employee, who referred to ticket prices as “outrageous” and made insulting comments towards consumers. The employee, who was later promoted, acknowledged his comments as “very immature and unacceptable.”
Live Nation operates hundreds of venues and its subsidiary Ticketmaster is recognized as the world's largest live event ticket seller. The company's legal team did not provide immediate comments after the verdict.
The ruling could result in penalties for Live Nation and Ticketmaster totaling hundreds of millions of dollars, based on a jury finding that Ticketmaster overcharged consumers by $1.72 per ticket in 22 states. Additional sanctions may require the company to divest certain entities.
The civil case against Live Nation was initially led by the federal government, accusing the company of stifling competition by restricting venues from using multiple ticket sellers.
“It's time to hold them accountable,” Kessler stated, labeling Live Nation a “monopolistic bully” that exploits consumers with inflated prices.
Live Nation's defense argued that it does not operate as a monopoly, attributing price-setting to artists and venues. They contended that the company’s success stemmed from quality service and hard work.
Ticketmaster's beginnings date back to 1976, and after merging with Live Nation in 2010, the company now controls 86% of the concert market and 73% overall when including sports events.
The trial took place following a history of discontent directed at Ticketmaster, dating back to the 1990s when Pearl Jam sought to challenge the company's practices. Years later, the Justice Department and over 30 states pursued the current lawsuit during the Biden administration.
While some states accepted earlier settlements with Live Nation, many pressed on with the trial seeking more substantial changes to the company's practices.
New Jersey Attorney General Jennifer Davenport called the ruling a confirmation of the harms Live Nation's monopoly inflicts on consumers. New York Attorney General Letitia James celebrated the ruling as a significant step in protecting the economy from monopolistic practices.
After the verdict, Kessler indicated that discussions regarding penalties and further proceedings were forthcoming, while he celebrated the significant outcome for consumers.
