Ticketmaster Found Guilty of Antitrust Violations

A federal civil jury in New York delivered a major blow to the concert industry on Wednesday, April 15, declaring Live Nation guilty of maintaining an illegal monopoly. The parent company of Ticketmaster was found in violation of U.S. antitrust laws following a blockbuster trial. This conviction occurred after the company initially concluded a settlement agreement with the U.S. Department of Justice in early March, prompting the federal prosecutors to withdraw from the prosecution. However, 34 U.S. states decided to continue the trial against the company, leading to this verdict.

Following the decision, the presiding judge, Arun Subramanian, will now determine damages in a separate proceeding. The potential penalties could include dismantling the group and the sale of Ticketmaster. According to U.S. media reports, the jury estimated that Ticketmaster had overcharged its customers by $1.72 per ticket sold. The total amount of damages will be set by the judge in the coming days.

The legal history traces back to 2010, when Live Nation acquired Ticketmaster with the approval of the U.S. Department of Justice, subject to conditions. The group has since been accused of abusing its dominant position in the concert promotion and ticketing markets. The lawsuit, filed by the Department of Justice and 40 states, began in March in New York before a settlement agreement was reached after a week of hearings. Live Nation agreed, among other things, to pay $280 million in damages and to sell 13 venues. However, a majority of states rejected these terms and continued the trial.

"In the face of the decline in antitrust law enforcement by the Trump administration, this verdict shows how far states can go to protect our citizens from large corporations that use their power to illegally raise prices and defraud Americans," reacted California Attorney General, Democrat Rob Bonta. During the hearing, the head of AEG Presents, Live Nation's main competitor, stated that average fees on concert ticket sales reach 25% of the face value in the U.S., compared to 15% in Europe, a difference he attributed to Ticketmaster's dominance in the American market.