Jury Rules Live Nation and Ticketmaster Operated an Illegal Monopoly

A federal jury has determined that Live Nation and its subsidiary Ticketmaster illegally monopolized the market for live event ticketing, particularly in large concert venues. The verdict, reached after four days of deliberation, concluded that the companies stifled competition and overcharged consumers.

The company now controls of 86% of the market for concerts and 73% of the overall market when sports events are included, according to Kessler. The lawsuit was brought by several US states who accused Live Nation of exploiting its dominance of both venues and promotions to overcharge fans.

This dominance has drawn criticism from fans and some artists. Grunge rock titans Pearl Jam battled the business in the 1990s, even filing an anti-monopoly complaint with the U.S. Department of Justice, which declined to bring a case then. Days into the trial, a settlement was announced.

The deal included a cap on service fees at some amphitheaters, plus some new ticket-selling options for promoters and venues. But the settlement doesn’t force Live Nation to split from Ticketmaster. A handful of the states joined the settlement. But more than 30 pressed ahead with the trial, saying the federal government hadn’t gotten enough concessions from Live Nation.

The proceedings aired a Live Nation executive’s internal messages declaring some prices “outrageous,” calling customers “so stupid” and boasting that the company “robbing them blind, baby.”

“The game is not over," said Live Nation's lawyer, Dan Wall, indicating that the company may pursue further legal avenues following the jury's decision.”

As the industry reacts to this ruling, it remains to be seen how it will reshape the competitive landscape of live entertainment and whether it will lead to more favorable conditions for consumers seeking access to events.