Live Nation might finally be facing its “Final Boss” in a Manhattan federal court. The live entertainment giant is currently in the middle of an antitrust trial that could, in theory, see the company forced to sell off Ticketmaster. It is the kind of high stakes drama that usually requires a stadium seating plan and a 15% service fee just to watch.
The US Department of Justice, along with a massive coalition of 40 states, is arguing that the 2010 merger between Live Nation and Ticketmaster created an illegal monopoly. They claim the company uses its “flywheel” power to bully artists into using their promotion services and force venues into exclusive ticketing deals. Live Nation, of course, says this is nonsense and blames high prices on those pesky online scalpers.
A Surprise Settlement (With a Catch)
Just a week into the trial, things took a turn for the weird. The DOJ announced a surprise settlement with Live Nation, but it hasn’t exactly ended the fight.
- The Deal: Live Nation agreed to pay a $280 million fine, sell off 13 amphitheatres, and open up some of Ticketmaster’s tech to rivals.
- The Drama: No one told the judge or the jury about the deal until the last minute. Judge Arun Subramanian was not amused, calling the lack of communication “entirely unacceptable.”
- The Rebel States: More than two dozen states, led by New York’s Letitia James, have refused to sign the deal. They reckon the settlement is “toothless” and doesn’t actually fix the monopoly. They want to keep the trial moving to get a more permanent result.
The Star-Studded Witness List
If the trial continues next week, the witness stand is going to look like a VIP backstage lounge. We are talking about potential testimony from:
- Kid Rock: The singer and Trump ally is expected to give his take on the industry.
- Music Moguls: Irving Azoff and Louis Messina (the man behind Taylor Swift’s massive tours) are on the list.
- The Rivals: SeatGeek CEO Jack Groetzinger has already testified about how hard it is to compete with the “Goliath” of ticketing.
Market Monopoly or Just Big Business?
The numbers being thrown around in court are staggering. Government lawyers claim Ticketmaster controls a whopping 86% of the primary ticketing market. Live Nation’s lawyers tried to argue it is actually closer to 40% if you include sports, which is a bit like saying you don’t own too many shoes if you count your flatmate’s collection as well.
With the DOJ’s top antitrust chief, Gail Slater, recently forced out after clashing with Attorney General Pam Bondi, the government’s side of the table is looking a bit shaky. However, the states are ready to pick up the slack.
Whether this leads to a full blown breakup or just a very expensive slap on the wrist, the era of “unchecked” ticket fees might finally be facing some serious interference. One thing is certain: the only people winning right now are the lawyers charging by the hour.
Related topics: Entertainment
