Christopher BarrettLive Nation has settled its antitrust case with the US Department of Justice (DOJ), but many of the 39 US state attorney generals involved in the case have pledged to continue the legal battle.
DOJ acting assistant attorney general Omeed A. Assefi said the deal will not require Live Nation to sell off Ticketmaster, which it acquired in 2010. However, the world’s biggest live event promoter, ticketing giant and venue operator, will reportedly be required to pay around $200 million in damages to US states involved in the lawsuit. Ticketmaster must also make changes to its business practices and structure.
The settlement is understood to require Live Nation to divest at least 13 of its amphitheatres, with the DOJ having argued that with Live Nation operating approximately 78% of the US’ major amphitheatres it had outsized leverage.
Among the other key requirements of the settlement is that Ticketmaster cap service fees for its venues at 15% of the ticket price, and open elements of its platform to other ticketing operators – enabling rivals such as Eventbrite to list tickets via Ticketmaster tech. The deal will also see the long-term exclusivity contracts Ticketmaster has with venues being limited, with venues able to allocate a ticket quota to other platforms.
The settlement brings the trial, which commenced on 3 March in a federal courthouse in New York, to a sudden close. The case involved attorney generals from nearly 40 US states, and reportedly ten of them have agreed to the settlement while others have pledged to press on with legal action.
New York attorney general Letitia James is continuing the lawsuit against Live Nation along with the attorneys general of Arizona, California, Colorado, Connecticut, Illinois, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.
“For years, Live Nation has made enormous profits by exploiting its illegal monopoly and raising costs for shows,” said James. “My office has led a bipartisan group of attorneys general in suing Live Nation for taking advantage of fans, venues, and artists, and we are committed to holding Live Nation accountable.
“The settlement recently announced with the US Department of Justice fails to address the monopoly at the centre of this case, and would benefit Live Nation at the expense of consumers. We cannot agree to it.
“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.
“We will keep fighting this case without the federal government so that we can secure justice for all those harmed by Live Nation’s monopoly.”