top line
Lawyers representing the Justice Department slammed Live Nation in a court filing days before the parties go to trial over their alleged monopoly on live entertainment, calling the ticketing company’s attempts to delay the trial “hopeless.”
Live Nation and the Department of Justice are scheduled to go to court on Monday. (Photo illustration: Michael M. Santiago/Getty Images)
Getty Images
important facts
The Justice Department argued that Live Nation was requesting an “unnecessary delay in the trial” that would “not substantially advance the case,” and noted that any delay would allow the ticket sales giant to continue to commit “anticompetitive harm” to the public.
Live Nation had previously filed an appeal challenging the presiding judge’s ruling earlier this month and requested a postponement of the impending trial. The presiding judge, Judge Arun Subramanian, denied Live Nation’s motion to dismiss and other motions to narrow the scope of the case.
Subramanian said during Wednesday’s hearing that he would likely deny Live Nation’s request for a delay, but had not yet issued a written ruling. reported by bloomberg.
The trial is currently scheduled to begin on Monday, two years after the Justice Department’s ruling. filed a lawsuit Live Nation and Ticketmaster are seeking to break up, claiming the companies have an unfair competitive advantage in the live entertainment business.
What do we know about the Live Nation trial?
Live Nation’s trial begins with jury selection on Monday. Subramanian denied Live Nation’s request to dismiss the lawsuit, which he did. dismiss Among the government’s claims that Live Nation’s monopoly on venue bookings is hurting the fan experience is that the government has failed to properly define the national fan market. Live Nation said in a statement after the ruling that with these claims dismissed, there is “no basis for dissolving Live Nation and Ticketmaster” and that it looks forward to contesting the remaining claims in court. But Subramanian allowed several key claims to proceed, including the government’s allegation that Live Nation forced artists to use its promotional services so they could book performances at Live Nation-owned amphitheaters, and another allegation that Live Nation monopolizes the ticketing market by forcing venues to use Ticketmaster as their primary ticketing operator.
Why did the Department of Justice sue Live Nation?
Ministry of Justice filed a lawsuit It began competing against Live Nation in May 2024 and included 29 states and Washington, D.C., and has since grown to include 10 more states. The government accused Live Nation of violating the Sherman Act, an antitrust law. Live Nation is suspected of tying venues into exclusive agreements that bar other ticket sellers from using them, preventing artists from booking venues without using Live Nation’s promotional services, buying out competitors, and threatening rivals. In response, Live Nation said it does not have exclusive rights to live entertainment and vowed to fight the lawsuit in court. “Calling Ticketmaster a monopoly may be a short-term PR move for the Justice Department, but it will fail in court because it ignores the basic economics of live entertainment,” Live Nation said in the article. statement At the time, it denounced the “baseless” claims and said competition was actually “eroding Ticketmaster’s market share.”
Points to note
Can Live Nation avoid a trial by settling with the government? Shortly after Subramanian denied the company’s motion to dismiss the case, Live Nation attorney Dan Wall published a blog post on the company’s website titled “It’s time to move on,” arguing for a settlement. The blog post was quietly deleted, but multiple outlet It has been reported that the reason is unknown.
Why are Live Nation and Ticketmaster under intense scrutiny?
Live Nation and Ticketmaster have been the subject of intense scrutiny from fans and artists both before and after the Justice Department lawsuit. Live Nation and Ticketmaster merged in 2010; explode in anger From some artists who feared a monopoly would form. Live Nation gained attention in 2022 after billionaire pop star Taylor Swift sold tickets for her Elas Tour, which saw unprecedented demand. Ticketmaster blamed high demand and bot attacks for stressing its website and causing server issues for some customers. A few days after the Eras Tour sale, new york times The Department of Justice has reportedly launched an antitrust investigation into Live Nation.
tangent
Live Nation was separately sued in September by the Federal Trade Commission, which accused the ticket sales company of violating FTC laws that prohibit deceptive practices in the marketplace. The FTC accused Live Nation and Ticketmaster of colluding with resellers to inflate prices, ignoring resellers who violate ticket purchase limits, and failing to take steps to stop bots because they were “too effective.” Live Nation disputed the allegations, and the following month the company announced policy changes, including banning users from creating multiple accounts, requiring resellers to use government-issued IDs, and using AI tools to combat bot purchases.
Read more
FTC sues Ticketmaster and Live Nation over high ticket resale (Forbes)