Jury Finds Live Nation Holds Illegal Ticket-Sales Monopoly

By Dave Michaels, Corinne Ramey and James Fanelli

A federal jury on Wednesday found that Live Nation illegally monopolized the ticketing market for major concerts in the U.S., in a win for a group of states that accused it of overcharging music fans and pressuring venues to use its dominant ticketing ser-vice, Ticketmaster.

The verdict came after five weeks of trial and nearly four days of deliberation by jurors in federal court in Manhattan. The Justice Department made the decision last month to settle its case against Live Nation, leaving more than 30 states to try their claims without the federal government.

Now, the group of states will likely try to persuade a judge during a new phase of proceedings that splitting up Live Nation is the only way to fix a broken market.

Consumers who were overcharged for tickets will be eligible to get money back, but the total Live Nation will pay hasn’t been determined yet.

Live Nation shares closed down more than 6% after the verdict was read. Shares of ticketing rival StubHub rose by nearly 4%, while Vivid Seats

closed up more than 9%.

“It is a major affordability win for the consumer and just a huge missed opportunity for the Department of Justice, which settled on the cheap in the manner that they did,” said Roger Alford, a former senior Justice Department official who has said lobbyists wield too much influence over how the Trump administration resolves antitrust cases.

On Wednesday, Live Nation said it would ask the judge to find that jurors had erred and overturn the verdict. The company also is challenging the expert-witness testimony that underpins the states’ claim for hundreds of millions of dollars in damages.

“We remain confident that the ultimate outcome of the states’ case will not be materially different than what is envisioned by the DOJ settlement,” the company said.

The bipartisan group of states argued that Live Nation, which merged with Ticketmaster in 2010, built a colossus that dominates essential parts of the live entertainment market, including concert promotion, venue management and ticketing. Its market share in ticketing and promoting shows at large am-phitheaters exceeded 70%, ac --cording to the states.

The case turned on claims that Live Nation bullied venues and artists, and kept prices high by shutting other ticket sellers out of key amphitheaters. The states said Live Nation tied its offerings together—for instance, requiring artists to use its promotion service if they wanted to perform at amphitheaters it controlled.

Live Nation denied it was an illegal monopoly and said the states’ case exaggerated its market power. The company argued that artists determine ticket prices and Ticket--master didn’t have the power to raise prices on fans or exclude competing ticketing services. Live Nation said it never conditioned concerts on a venue’s use of Ticketmaster.

The outcome is validation for Live Nation’s longtime critics, who have said the Ticketmaster merger never should have been allowed.

It also represents a win for states that have taken a leading role in enforcing competition laws, while the Trump administration has warmed to consolidation and favors cutting deals to resolve antitrust lawsuits inherited from the Biden era.

The Obama administration had allowed the merger, prompting worries that the combination of the largest concert promoter and ticketing company would harm consumers. For years, antitrust enforcers tried to remedy those concerns with settlements that sought to limit Live Nation’s ability to pressure rivals, but opponents argued that those measures weren’t enough.

A breakup of Live Nation and its Ticketmaster subsidiary, which the company is sure to fight, would be a significant blow to the company, which touts itself as the largest live entertainment business in the world. Having both concert promotion and ticket sales creates a virtuous cycle in which the growth of one part of the business fuels others, the company has said.

Consumers would be eligible to receive damages payments based on the jury’s finding they were overcharged by $1.72 per ticket. U.S. District Judge Arun Subramanian, who oversaw the trial, will determine the total amount at a later date, as well as what constraints to put on Live Nation to foster more competition, including whether to order a Ticketmaster spinoff.

Only a few states joined the Justice Department’s settlement, which came after President Trump inquired about resolving the case, The Wall Street Journal reported. A larger group that included New York, Texas and California continued to litigate, believing the Trump administration had signed on to a weak settlement that fell short of the industry overhaul envisioned by some of Live Nation’s competitors and critics.

A summary of the federal settlement outlined terms that would make it easier for rival promoters to compete for business at Live Nation’s amphitheaters and would restrict the company’s ability to use exclusive ticketing contracts at its venues. The company agreed at the time to pay $280 million in damages to the states.

Since merging with Ticketmaster, Live Nation has dominated the tickets market for live events, including last year’s Oasis tour.

NATASHA MOUSTACHE/ GETTY IMAGES