USA v. Live Nation-Ticketmaster: all the news on the lawsuit that could take down a giant

A federal judge is officially being tasked with deciding whether to break up Live Nation-Ticketmaster.

More than 30 states are asking Judge Arun Subramanian to order a sale of the ticketing giant, a “sufficient number” of large amphitheaters, and limit its ability to tie access to its remaining amps to the use of its promotions services. In April, a jury found that the company is an illegal monopolist, after more than a month of trial. The initial remedies proposal doesn’t include a further breakup of some other parts of Live Nation’s business that California Attorney General Rob Bonta told The Verge and other outlets earlier this week they were considering, but the states say they reserve the right to make additional requests as they learn more.

A handful of Democrats called an unofficial hearing on Capitol Hill Monday to slam the Department of Justice’s “trivial” and “pathetic” settlement with Live Nation-Ticketmaster, previewing how they might go after Trump administration antitrust deals if they win back congressional power in November.

While the DOJ settlement with Live Nation, which came one week into trial and with a promise of up to $280 million, received copious pushback, Democrats don’t at the moment have the power in either chamber to set committee agendas. That meant that Monday’s so-called shadow hearing looked different than most official proceedings. Instead of sitting at the elevated seats behind the dais, the lawmakers sat at tables below, eye level with witnesses including California Attorney General Rob Bonta, one of the AGs continuing the fight against Live Nation-Ticketmaster, ousted Trump administration antitrust official Roger Alford, and several entertainment industry players, including a member of the band The Hold Steady. Several artists asked to appear at the forum declined out of fear for their livelihoods, according to House Judiciary Committee Ranking Member Jamie Raskin (D-MD), who co-hosted the forum with Senate Homeland Security permanent subcommittee on investigations Ranking Member Richard Blumenthal (D-CT).

After a jury found that Live Nation-Ticketmaster violated antitrust law on several counts, the company warns in a blog post that the verdict “is not the last word on this matter.”

The company plans to renew a motion for the judge to issue a ruling against the states, claiming that they did not prove their case as a matter of law. It also awaits the court’s decision on a separate motion to strike the testimony of one of the states’ expert witness, whose analysis they say helped inform the jury’s damages award. The jury found that Ticketmaster overcharged consumers $1.72 per ticket.

Live Nation-Ticketmaster is an illegal monopolist, a Manhattan jury found, according to Bloomberg. The jury found the company liable on three counts: illegally monopolizing the market for live event ticketing, amphitheaters, and tying its concert promotions business with the use of its venues, Bloomberg reported.

The verdict, reached after several days of deliberation, leaves the live entertainment giant open to a potential breakup — which was the stated goal of the lawsuit back when it was filed by the Biden administration’s Department of Justice. Such an outcome would go far beyond the settlement that the Trump administration’s DOJ reached with Live Nation one week into trial. Still, Judge Arun Subramanian could opt for lesser remedies than a breakup, and any outcome will likely be the subject of appeals. Subramanian will also decide the total damages owed by the company based on the jury’s finding that Ticketmaster had overcharged consumers by $1.72 per ticket, according to The New York Times.

Consumer complaints about Ticketmaster are so voluminous at state attorneys general offices that Pennsylvania’s comes with an explicit plea for residents lodging a grievance about the company to be patient for a response. That kind of pressure has driven more than 30 states to push forward with claims that Live Nation-Ticketmaster illegally monopolized parts of the concert industry, even when the federal government settled its claims. Soon it will be up to a jury to decide if the ways Live Nation-Ticketmaster conducts its business is not just frustrating, but also illegal.

An antitrust trial that began March 2nd against Live Nation-Ticketmaster is coming to a close on Thursday. State AGs who pushed forward with their claims after the Justice Department settled one week in took a gamble. They were betting that they could not only win the case, but also get more relief for their constituents, and permanently change the competitive dynamics of music touring in the US, including through a potential breakup of the industry mainstay. The states argued that Live Nation-Ticketmaster maintained its monopoly power by engaging in anticompetitive behavior, including leveraging its power in concert promotions and its broad control of amphitheaters across the country to coerce concert venues into using its ticketing platform, even when they preferred not to.

After a chaotic week following the Justice Department’s mid-trial settlement with Live Nation-Ticketmaster, the antitrust trial picked back up surprisingly smoothly on Monday — this time, with dozens of states leading the case.

This isn’t the outcome the states originally wanted. Out of concerns about being able to effectively take over the case and fear that the jury would be prejudiced by the shakeup, they requested a mistrial, which would have restarted the court battle at an unknown future date. But an irritated Judge Arun Subramanian seemed likely to deny the request, and once the states figured out how to retain the DOJ’s expert witness and were able to quickly hire up, they withdrew their mistrial motion. After the new faces were introduced, the trial restarted from roughly where it left off more than a week ago, with testimony that included how Live Nation deployed its “velvet hammer” against rivals.

The Live Nation-Ticketmaster trial is back on. Dozens of states are expected to move forward with their claims against the company’s alleged concert industry monopoly beginning on Monday, following a brief hearing on Friday.

The Justice Department and a handful of states have accepted settlements with the company, but the majority of the 40 state and district attorney general plaintiffs — as of now — are continuing their fight in court. The states that are pressing forward withdrew their motion for a mistrial, filed after the DOJ announced its settlement in court Monday, and showed up with new outside counsel to lead their trial team in the absence of the federal litigators. The judge also said that jurors will be allowed to see internal chats between Live Nation employees who bragged about how they “gouge” fans, overruling opposition from the company.

Instead of moving forward with a jury trial against Live Nation-Ticketmaster as expected, the Justice Department announced a settlement Monday that omitted what used to be on the top of its wish list: a breakup.

What the DOJ did get was a series of concessions that some industry stakeholders found unsatisfying and even baffling. There are a few bright spots, those who spoke to The Verge said: a 15 percent cap on Ticketmaster service fees at Live Nation-owned or operated amphitheaters, for instance, and a pledge to give artists more transparency on their own ticket sales. But they remained unconvinced the deal would usher in the large-scale change proponents of the lawsuit wanted. Many are hoping state attorneys general continue their case in pursuit of broader remedies, even if there’s no guarantee a jury will find in their favor or that Judge Arun Subramanian will grant more dramatic requests.

Was it a threat or a reality check? That’s a key question in the government’s anti-monopoly case against Live Nation, which is currently in limbo after the Justice Department reached a settlement with the company and as dozens of states push ahead.

The Verge obtained the audio of a 2021 call at the center of the case. The recording, a public exhibit that was played for jurors in the first week of trial, features then-CEO of Barclays Center John Abbamondi and Live Nation CEO Michael Rapino arguing over a ticketing deal for Brooklyn’s Barclays Center arena. A transcript of the call was previously posted to the docket, but the audio gives a better sense of how tense it really was.

The Live Nation trial is not over yet. Several states look to be headed to trial on their own as soon as Monday unless they hash out a settlement in the next few days.

On Tuesday, a day after the Justice Department revealed in court it had reached a settlement with Live Nation that a handful of states had agreed to, Judge Arun Subramanian held a hearing on the future of the case. He ordered Live Nation CEO Michael Rapino, DOJ Antitrust Division acting chief Omeed Assefi, and representatives of states that hadn’t settled to stay at the Manhattan courthouse and attempt to reach a broader deal. Subramanian has not yet ruled on a mistrial motion that dozens of state plaintiffs filed yesterday, but he seemed inclined to move forward with trial next week should they remain without a settlement by then. As of Monday, 27 states and DC were part of the group of proceeding plaintiffs, out of the 40 total attorneys general.

On Monday, Live Nation-Ticketmaster agreed to settle a federal antitrust lawsuit with the Department of Justice. Eight states so far have indicated they plan to join the settlement, a district attorney said in court, and four others remain unclear on their status. The case alleged that it illegally monopolized parts of the live events industry, leading to higher ticket prices for consumers and locking venues into exclusive deals. Under the terms of the settlement shared by Live Nation, the deal won’t force it to split off from Ticketmaster.

27 states and DC will continue pushing their case, and have already filed for a mistrial.

SeatGeek was close to a deal that would bring its ticketing business to the next level. The company was in negotiations with the Dallas Cowboys, aiming to take over first-party sales at its stadium. But there was one sticking point: “the concert issue.” The team feared that if it dropped SeatGeek’s rival Ticketmaster, Ticketmaster’s parent company Live Nation could pull concerts from the team’s stadium, damaging an important revenue stream.

That’s how SeatGeek CEO Jack Groetzinger remembers things. The deal was ultimately successful, resulting in a primary ticketing partnership that was announced in 2018. But for a while, Groetzinger recalled on the stand in front of a Manhattan jury Friday, “the concert issue was the one thing we just couldn’t get over, and seemed like it might tank the whole process.”

John Abbamondi had orders to let the CEO of Ticketmaster down easy.

In April 2021, Abbamondi was the CEO of BSE Global, the company that ran Brooklyn arena the Barclays Center. BSE Global’s existing Ticketmaster contract would expire at the end of September, and Abbamondi and his team had evaluated proposals from SeatGeek, AXS, and Ticketmaster. The economics of Ticketmaster offer, according to Abbamondi, “was nowhere near as good as the other two.” SeatGeek’s technology was “superior” to Ticketmaster’s on balance, on top of better financial terms including an equity stake in the company, the arena decided. It clinched their decision to go with a newer, smaller player in the field.

In mid-February, the Department of Justice lost its head antitrust enforcer — just weeks before it was scheduled to argue one of the year’s biggest anti-monopoly cases in court.

Antitrust Division chief Gail Slater announced her departure suddenly, via a post on her personal X account. But to those who follow the agency closely, it was far from surprising. For months, leaks about the division described tensions between Slater and her team with DOJ leadership, and President Donald Trump’s penchant for personal dealmaking raised questions about who would really call the antitrust shots.

Gail Slater, the top antitrust enforcer at the Justice Department, announced Thursday that she has left her post, just weeks before the agency’s next major tech monopoly trial against entertainment giant Live Nation is set to begin.

“It is with great sadness and abiding hope that I leave my role as AAG for Antitrust today,” Slater posted from her personal X account. Slater thanked the staff of the Antitrust Division and called the role “the honor of a lifetime.” In a statement, Attorney General Pam Bondi thanked Slater for her service, but did not directly address questions about what precipitated her departure or who would take over as the acting leader of the Division.

The latest targets in the White House’s on-again-off-again antitrust war are Ticketmaster and Live Nation, two villains that everyone appears to agree on. The Federal Trade Commission is accusing Ticketmaster (which owns Live Nation) of allowing ticket brokers to illegally exceed limits on purchases and then profiting off the inflated resale value. Customers often pay significantly more than the face value because resellers have snatched up all the tickets. And when a ticket is resold through Ticketmaster’s site, it takes a cut, essentially profiting off the same ticket twice. The FTC even alleges that company leadership turns “a blind eye as a matter of policy” when dealing with brokers. The agency also says that Ticketmaster routinely uses deceptive practices when advertising prices, which are often much higher at checkout.

With Ticketmaster controlling roughly 80-percent of primary ticket sales in the US, fans and artists are often left with little recourse. Ticketmaster often blames the technological hurdles of trying to rein in scalpers, but the FTC doesn’t seem to be buying that excuse one bit. In the complaint it rebukes those claims saying: