Ticketmaster ruled illegal monopoly in major antitrust verdict
What's the story
A Manhattan jury has declared Live Nation-Ticketmaster an illegal monopoly, Bloomberg reported. The ruling comes after a multi-day deliberation and finds the company liable on three counts: illegally monopolizing the market for live event ticketing and amphitheaters, as well as tying its concert promotions business with the use of its venues. This verdict could lead to a potential breakup of the entertainment giant.
Legal implications
Remedies may be less severe than complete dissolution
The verdict, which could lead to the breakup of Live Nation-Ticketmaster, was the original aim of the lawsuit filed by the Biden administration's Department of Justice (DOJ). However, Judge Arun Subramanian may choose less severe remedies than a complete dissolution. Any decision will likely be appealed. The judge will also determine how much damages the company owes based on jury findings that it overcharged consumers by $1.72 per ticket.
Legal strategy
DOJ settled claims with Live Nation during trial
The six-week trial included a week-long break for negotiations after the DOJ settled its claims with Live Nation. Out of the 40 attorneys general who went to trial, 34 chose to continue litigation, seeking a broader outcome than what the feds achieved. This included agreements for Live Nation to offload exclusive booking arrangements at 13 amphitheaters and cap certain Ticketmaster fees.
Trial testimonies
Testimonies from various industry stakeholders presented in court
The jury heard from a range of witnesses including Live Nation executives like CEO Michael Rapino, artists and their staff such as Ben Lovett of Mumford & Sons and Drake's manager Adel Nur, competitors like SeatGeek, and concert venue executives. The states argued that Live Nation used implicit threats to force venues into using its ticketing services. However, the company countered by saying it offers a superior service and competes fiercely for business.
Reaction
'Landmark victory,' say state attorneys general and DOJ officials
Acting DOJ antitrust chief Omeed Assefi hailed the verdict as "a fantastic outcome for the American people." He said, "DOJ and some states settled their case and got instant relief. The remaining states received a liability finding and will now move on to the next phase of a remedies trial." New York Attorney General Letitia James also called it a "landmark victory," saying it proved Live Nation and Ticketmaster were breaking the law.