Live Nation Strikes Surprise Deal in Antitrust Case
Live Nation unveils a $280M antitrust settlement, forcing Ticketmaster to open parts of its platform and limit fees, sparking backlash from several US states.
Live Nation, which owns Ticketmaster, has reached a surprise settlement with the Department of Justice in its antitrust case just a week after the trial began.
Under the agreement, Live Nation will create a $280 million settlement fund for the states that participated in the lawsuit and Ticketmaster will open portions of its platform to other ticketing companies, Live Nation announced on Monday.
Under the agreement, Ticketmaster will also be required to withdraw from its exclusive booking agreements with 13 amphitheaters in the US and limit service fees to 15% of the ticket price. The agreement also limits the long-term exclusivity contracts that Ticketmaster uses when partnering with venues.
A New York State prosecutor told a jury last week that Ticketmaster charges an average of $7.58 per ticket for events at large concert venues, claiming the concert ticketing group dominates the live-event market, harming artists, venues, and fans.
The Justice Department was expected to argue that Live Nation has an illegal monopoly in certain ticketing and venue markets and that Ticketmaster dominates the ticketing service through threats and multi-year exclusive contracts with venues.
In a statement, Live Nation said it was pleased to announce the settlement of the lawsuit.
"Today marks a major step forward in improving the concert experience for artists and fans across the United States," Michael Rapino, President and CEO of Live Nation Entertainment, said in a statement. "By giving artists more flexibility in choosing their promotional partners and ticketing strategies, while also keeping concert costs more affordable for fans, we are putting more power where it should be – with artists and fans."
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The lawsuit involves attorneys general from 30 states, including California, Massachusetts, Utah, and Wyoming. Since the settlement was announced, a bipartisan group of attorneys general has stated that they will refuse to accept the terms of the settlement, arguing that it does not address Live Nation's dominance in the ticketing industry, suggesting they may pursue a new trial of their own.
New York State Attorney General Letitia James said in a statement, "The recent agreement with the US Department of Justice fails to address the monopoly at the heart of this case and will benefit Live Nation at the expense of consumers. We cannot agree to this." “My Attorney General colleagues and I have a strong case against Live Nation, and we will continue to pursue our case to protect consumers and bring fair competition back to the live entertainment industry.”
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