Topline
Lawyers representing the Department of Justice blasted Live Nation in a court filing days before the parties are set to head to trial over allegations Live Nation and Ticketmaster hold a monopoly over live entertainment, calling the ticketing company’s attempts to delay the trial “desperate.”
Key Facts
The Justice Department argued Live Nation requested a “needless delay of trial” that would “not materially advance proceedings,” noting a delay would allow the ticketing giant to continue alleged “anticompetitive harm” to the public.
Live Nation had previously requested a delay to the impending trial after filing an appeal contesting a ruling the presiding judge had made earlier this month, in which judge Arun Subramanian rejected Live Nation’s motion to dismiss and other motions that would have narrowed the scope of the case.
Subramanian said at a hearing Wednesday he is likely to deny Live Nation’s request for a delay but has not yet issued a written ruling, Bloomberg reported.
The trial is currently scheduled to begin Monday, two years after the Justice Department filed a lawsuit seeking to break up Live Nation and Ticketmaster, alleging the companies hold an unfair competitive advantage in the live entertainment business.
What Do We Know About The Live Nation Trial?
The Live Nation trial will begin with jury selection Monday. Though Subramanian rejected Live Nation’s request to dismiss the case, he did dismiss some claims brought by the government that Live Nation holds a monopoly over venue booking and that Live Nation harms the fan experience, saying the government had failed to properly define a nationwide market for fans. Live Nation said in a statement following the ruling there is “no possible basis for breaking up Live Nation and Ticketmaster” with those claims dismissed, saying the company looks forward to fighting the remaining claims in court. Subramanian allowed several key claims to proceed, though, including the government’s allegation that Live Nation had coerced artists to use the company’s promotion services so they could book shows at Live Nation-owned amphitheaters, as well as another allegation that Live Nation monopolizes the ticketing market by forcing venues to use Ticketmaster as their primary ticketing operator.
Why Did The Justice Department Sue Live Nation?
The Department of Justice filed a lawsuit against Live Nation in May 2024, joined by 29 states and Washington, D.C., which has since grown to include ten additional states. The government accused Live Nation of violating the Sherman Act, an antitrust law, by allegedly locking venues into exclusivity contracts that forbid them from using other ticketers, blocking artists from booking their venues unless they use Live Nation’s promotion services, acquiring competitors and threatening rivals, among other allegations. Live Nation, in response, said it does not have a monopoly over live entertainment and vowed to fight the suit in court. “Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment,” Live Nation said in a statement at the time, slamming “baseless” allegations and saying competition has actually “eroded Ticketmaster’s market share.”
What To Watch For
Whether Live Nation can avoid trial by settling with the government. Shortly after Subramanian tossed the company’s motion to dismiss the lawsuit, Live Nation lawyer Dan Wall published a blog post on the company website titled, “It’s Time to Move On,” advocating for a settlement. The blog post was quietly taken down, multiple outlets reported, though it is unclear why.
Why Have Live Nation And Ticketmaster Faced Scrutiny?
Both before and after the Justice Department lawsuit, Live Nation and Ticketmaster have been subject to scrutiny by fans and artists. Live Nation and Ticketmaster merged in 2010, sparking ire from some artists who feared a monopoly would form. Live Nation came under heightened scrutiny in 2022 when billionaire pop star Taylor Swift sold tickets for the Eras Tour, which saw unprecedented demand. Ticketmaster blamed the high demand and bot attacks for putting stress on its website, causing server issues for some customers. Days after the Eras Tour sale, the New York Times reported the Department of Justice had begun an antitrust probe of Live Nation.
Tangent
Live Nation was separately sued by the Federal Trade Commission in September, which accused the ticketing company of violating the FTC Act, which prohibits deceptive practices in the marketplace. The FTC accused Live Nation and Ticketmaster of colluding with resellers to jack up prices, ignoring resellers who violate ticket purchase limits and declining to take measures to stop bots because they were “too effective.” Live Nation disputed the allegations, and the following month, the company announced policy changes including a ban on users making multiple accounts, requiring resellers to use government-issued ID and using AI tools to counter bot purchases.
Judge rejects Live Nation bid to dismiss US lawsuit claiming it monopolized live concerts (Reuters)
FTC Sues Ticketmaster And Live Nation Over High-Priced Ticket Resales (Forbes)
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