A jury in Manhattan has ruled that Live Nation and its subsidiary Ticketmaster maintain an anti-competitive monopoly over major concert venues. This landmark decision, reached after four days of deliberation, highlights the company’s significant control in the live entertainment market in the U.S. and beyond.
Background of the Case
The lawsuit was brought by multiple U.S. states, initially led by the federal government. It accused Live Nation of using its dominance to stifle competition, such as restricting venues from hiring multiple ticket sellers. Jeffrey Kessler, a lawyer for the states, described Live Nation as a “monopolistic bully” that inflates prices for consumers.
Live Nation’s Defense
In its defense, Live Nation argued that it is not a monopoly. A company lawyer claimed that prices and ticketing practices are determined by artists, sports teams, and venues, not solely by Live Nation’s influence. The company asserted that its size reflects its excellence in the industry.
Market Control Statistics
- Live Nation controls 86% of the concert ticketing market.
- It holds 73% of the overall market, including sports events.
Historical Context
Founded in 1976, Ticketmaster merged with Live Nation in 2010. The company has faced criticism from artists and fans for years. Notable instances include Pearl Jam’s attempts to challenge Ticketmaster in the 1990s, which were dismissed by the U.S. Department of Justice.
Recent Developments
This recent legal challenge was supported by over 30 states, which believed the federal settlement with Live Nation fell short of adequately addressing competition concerns. During the trial, CEO Michael Rapino testified about the company’s practices, including the fallout from the December 2022 ticketing debacle for a Taylor Swift concert, attributed by Rapino to a cyberattack.
Internal Communications Exposed
Testimony included messages from a Live Nation executive expressing disdain for customers and admitting to outrageous pricing practices. This revelation was met with a public apology from the executive, who acknowledged the unprofessional nature of those statements.
Next Steps for Live Nation
Following the verdict, the presiding judge instructed both parties to collaborate with the U.S. government to draft a plan for the case’s remedies phase. A proposed schedule for motions is expected by late next week.
This ruling against Live Nation and Ticketmaster marks a significant moment in the ongoing discussion about competition in the live entertainment industry, potentially reshaping how tickets are sold and managed in the future.
