The New York Times: Jury finds Live Nation acts as a monopoly

A US Federal jury has found Live Nation, the concert giant that owns Ticketmaster, has operated as a monopoly in violation of Federal and State antitrust laws, ending a closely watched trial in New York that could have far-reaching consequences in the music industry.

The verdict came after four days of deliberations in which the nine-person jury parsed a long list of questions it was asked to consider in a complex case that involved weeks of expert testimony.

The judge overseeing the case, Arun Subramanian, will determine remedies in a separate proceeding. That could include significant divestments by Live Nation, or even a breakup of Live Nation and Ticketmaster — an outcome that the Federal Government had called for when filing its case almost two years ago, though it is sure to be vigorously contested by Live Nation.

Live Nation will also face monetary damages as a result of the jury’s verdict in the case, which was brought by 33 states and Washington DC. The jury determined that Ticketmaster had overcharged consumers by $US1.72 ($2.40) for each ticket. The judge will next set an overall damages amount based on the jury’s finding.

During the seven-week trial, Live Nation consistently argued that it is not a monopoly, and that it competes aggressively — but legally — in a market filled with other ticketers, concert promoters, venue operators and sports teams.

Countering one of the government’s central claims, Live Nation also denied that it threatens venues to sign deals with Ticketmaster or else risk losing access to Live Nation’s popular concert tours.

“We are fierce competitors,” David R. Marriott, a lawyer for Live Nation, told the jury in closing arguments last week. “We are trying to win the business.”

Whatever remedy the judge orders, it will likely shift the competitive landscape in the multibillion-dollar concert business, where Live Nation has been a colossus with no equal. Last year, the company put on 55,000 events and sold 646 million tickets around the world. According to testimony, Ticketmaster sells about 10 times as many tickets as its closest rival, AEG.

As Live Nation has pitched to Wall Street, its greatest advantage is the “flywheel” model of its interconnected businesses, in which an ever-increasing supply of concert tours fuel higher-margin transactions like ticket sales and sponsorship deals. If that model is disrupted by court-ordered divestments, it could dampen Live Nation’s power.

After news of the verdict on Wednesday, shares of Live Nation stock fell by 6 per cent.

In a statement, the company noted that it had a number of motions still pending in the case, including one for judgement as a matter of law. “The jury’s verdict is not the last word on this matter,” the company said.

The trial served as a high-profile test of antitrust enforcement under the Trump administration, which has shown a preference for settling cases. Just a week into the trial, the Justice Department exited the case after reaching a settlement with Live Nation. But 34 of the 40 plaintiffs that had joined the federal lawsuit balked at the terms and continued the trial on their own.

In that settlement, which still requires approval from the judge, Live Nation agreed to set aside as much as $281 million to settle claims from the states involved in the case. But only six states — Arkansas, Iowa, Mississippi, Nebraska, Oklahoma and South Dakota — have confirmed they would join the settlement and, according to court filings, would share a total of $18.6 million.

The trial featured testimony from top Live Nation executives, including its longtime CEO, Michael Rapino, along with business people from rival concert and ticketing companies and a battery of economists retained as expert witnesses by both sides.

But star power was mostly absent. Ben Lovett, a member of the band Mumford & Sons who also operates a venue business, was heard in a video deposition. Kid Rock, the outspoken rap-rock star who had been named as a possible witness, never testified. Managers of Drake and Dave Matthews spoke, with praise for Live Nation.

In its complaint, filed in 2024 under the Biden administration, the government accused Live Nation of operating an illegal monopoly that stifles competition and hinders innovation in the live entertainment industry, driving up ticket prices for millions of fans.

The case was the culmination of years of scrutiny of Live Nation, which had promised that combining with Ticketmaster would benefit artists and fans. In 2019, the Justice Department found that Live Nation had “repeatedly” threatened venues in violation of an agreement, known as a consent decree, that the company had signed with the government, which set guidelines about how the merged company was allowed to behave.

Jeffrey L Kessler, an antitrust lawyer, was hired by the states after the settlement, with just days to prepare for the complex case. In closing arguments last week, he told the jury that Live Nation was “a monopolist who views itself to be above the law” and that “it is time to hold them accountable.”

The government told the jury that Live Nation had monopolised ticketing at what it called “major concert venues” — a selection of amphitheatres and arenas — and threatened operators that they would lose access to Live Nation’s popular concert tours if they did not use Ticketmaster.

Artists, the government argued, are also blocked from using Live Nation’s outdoor amphitheatres if they do not use Live Nation as a promoter.

Live Nation has insisted it is not a monopoly, arguing that it faces vigorous competition in concert promotion and ticketing, and that it does not issue threats to venues, artists or anyone else.

To some observers, the verdict underscores how states and private-sector players could pick up their scrutiny of big companies in spite of the Trump administration’s apparent preference to settle. Last month, a group of eight Democratic state attorneys general sued to block the broadcasting company Nexstar’s purchase of its rival Tegna. The federal government has allowed the deal to go through.

Roger Alford, who was ousted last year as the top deputy in the Justice Department’s antitrust division, and later criticised Live Nation for hiring people connected to the Trump administration to press its case, called the verdict a “major missed opportunity” for the federal government.

“They had victory in their grasp and then they just walked away from it,” he said. “To the extent the Department of Justice is not going to exercise its responsibility to enforce the antitrust laws, we now have confidence that the state attorneys general and the private bar will pick up the baton.”

On his way to the elevator, Dan Wall, a top Live Nation executive who was involved in negotiations with the Justice Department, spoke to a group of reporters.

“Obviously we’re disappointed,” he said, but noted that his team was not anticipating an outcome much different than the settlement in March. “The game is not over by any means,” he added. “There’s a lot more game to play.”