Live Nation wins six-year ‘monopoly’ US legal battle

A US federal court has ruled in favor of Live Nation after it was accused of ‘exercising market and monopoly power’ unlawfully by Maryland-based promoter It’s My Party.

In a case that dates back to March 2009, IMP and sister company It’s My Amphitheater Inc. – both run by concert promoter Seth Hurwitz – alleged that Live Nation has unreasonably restrained trade in a number of ways.

The crux of their argument was that Live Nation used its position as a nationwide venue owner unfairly, tying artists into exclusive shows – in its owned Amphitheaters – in exchange for attractive guarantees.

Instead of receiving a guarantee from a national promoter, artists who sign various contracts to ‘local’ US promoters commonly receive a percentage of gross ticket sales.

“We feel vindicated that the court was able to see through the baseless allegations by a rival promoter”

Live Nation

The court also examined the fact that large national promoters like Live Nation can use their cashflow to hold revenues from an artist’s tour in escrow until their dates are completed – allowing them to cover losses from poor-selling concerts with income from sell-out shows. This essentially acts as an insurance policy, enabling higher guaranteed payment to acts.

In issuing summary judgment, the court dismissed key elements of IMP’s expert testimony, ultimately rejecting allegations that Live Nation had coerced any artists or engaged in any anti-competitive conduct.

Despite acknowledging that “Live Nation is undisputedly large and utilises its size and global reach to sign artists to exclusive contracts”, Judge Frederick Motz concluded that there was no evidence that Live Nation’s conduct violated US antitrust laws.

Live Nation said in a statement: “We are very pleased with the judge’s ruling, which we believe validates Live Nation’s business approach and practices, and which aligns with our long-standing belief that the accusations made in this case were completely false.

“We feel vindicated that the court was able to see through the baseless allegations by a rival promoter and recognize that the claims of anti-competitive conduct had no merit. Our focus is, and will continue to be, providing a world-class live music experience for artists and their millions of fans.”Music Business Worldwide

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