The antitrust trial against Live Nation Entertainment resumed today (16 March) in a New York federal court, with more than 30 states pressing ahead after rejecting the US Department of Justice’s tentative settlement.
According to the Associated Press, jurors were told that Arkansas, Nebraska and South Dakota had settled claims and were no longer part of the case.
Proceedings then continued with an attorney for the remaining plaintiffs questioning Jay Marciano, CEO of AEG Presents, Live Nation’s primary competitor.
CNN reports the states have also brought in prominent antitrust attorney Jeffrey Kessler of Winston & Strawn to co-lead the case following the DOJ’s withdrawal.
The DOJ sued Live Nation and Ticketmaster in May 2024, joined by attorneys general from dozens of states and the District of Columbia. They accused the company of “monopolization and other unlawful conduct that thwarts competition in markets across the live entertainment industry.”
But last Monday (March 9), around a week into the trial, Live Nation confirmed that a settlement had been reached that “resolves all remaining matters with the DOJ, without any admission of wrongdoing.”
Under the terms of the agreement, Live Nation will retain ownership of Ticketmaster but will divest its 13 exclusive booking agreements with amphitheaters nationwide. The company’s owned and operated amphitheaters will become “open venues,” with promoters able to distribute up to 50% of tickets and service fees capped at 15%.
In ticketing, Ticketmaster will offer both exclusive and non-exclusive proposals to all major concert venues. Live Nation has also set aside $280 million to address damages claims from the states, and agreed to an eight-year extension of its existing consent decree with the DOJ.
Live Nation has denied the allegations, and its lawyers have told jurors that the live entertainment industry is more competitive than the states suggest.
“The settlement recently announced does not adequately remedy the harms to the marketplace for live music and to concertgoers caused by Live Nation.”
Jennifer Davenport, New Jersey Attorney General
The deal, however, was swiftly rejected by the vast majority of states.
New York Attorney General Letitia James said in a statement last week that the settlement “fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers.”
James added: “My attorney general colleagues and I have a strong case against Live Nation, and we will continue our lawsuit to protect consumers and restore fair competition to the live entertainment industry.”
New Jersey Attorney General Jennifer Davenport echoed the sentiment, saying: “The settlement recently announced does not adequately remedy the harms to the marketplace for live music and to concertgoers caused by Live Nation. We are willing and able to stand with other partner states to continue litigating this case without the federal government.”
The trial’s continuation had been in doubt after the states requested a mistrial in response to the DOJ’s tentative settlement. However, following several days of negotiations urged by Judge Arun Subramanian, the states withdrew their mistrial request and the judge confirmed the trial would resume.
On Friday (March 13), attorneys for the states said seven states were close to joining the federal government’s planned settlement. However, Judge Subramanian ruled that any state without a finalised agreement by Monday would remain part of the case until one was reached.
Michael Rapino, Live Nation’s CEO, and musician Kid Rock, an outspoken critic of the ticketing industry, are among those on the states’ witness list.
Separately, the judge dismissed Live Nation’s objection to the inclusion of trial exhibits containing internal Slack communications in which company employees allegedly described the VIP access prices at a Tampa, Florida, amphitheater as “outrageous,” called customers paying those fees “so stupid,” and wrote “I almost feel bad taking advantage of them,” followed by “BAHAHAHAHAHA.”
“The Slack exchange from one junior staffer to a friend absolutely does not reflect our values or how we operate,” Live Nation said in a statement to Newsweek. “Because this was a private Slack message, leadership learned of this when the public did, and will be looking into the matter promptly.”Music Business Worldwide
