NEW YORK — A federal jury ruled that Live Nation-Ticketmaster operated as an illegal monopoly, a decision that could reshape the live events industry.
The verdict came after New York and more than 30 other states and Washington, D.C., argued that the decades-old merger between Live Nation and Ticketmaster hurt consumers. Critics said the company charged unreasonable venue and service fees, often tacked on at the end of transactions.
Lee Hepner, senior legal counsel at American Economic Liberties Project, was among those who testified about the company’s market control. The jury agreed that consumers were hurt by the lack of competition in the live events market.
“The easiest and simplest way to rid Live Nation of its power over the live events ecosystem is to separate Live Nation, which controls venues, artist management and concert promotion, from its ticketing service, Ticketmaster,” Hepner said.
The case gained attention after widespread complaints during Taylor Swift’s Eras Tour ticket sales. Many fans were unable to purchase tickets due to sky-high prices and persistent Ticketmaster website troubles.
“Thirty-three states have come out victorious and New York was one of those states and our attorney general has said this is a big win for consumers. But consumers will not see immediate changes, correct?” News10NBC’s Deanna Dewberry asked.
“Right. The relief is still on the horizon,” Hepner said. “The case will now go to a remedies proceeding where a judge will decide what to do about Live Nation’s illegal monopoly.”
Live Nation and Ticketmaster are expected to appeal, which means the case conclusion could be a year away. Still, experts say this legal victory gives fans and artists something to celebrate.
Statement from Live Nation Entertainment
“The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand.
“Live Nation will soon renew its motion for judgment as a matter of law, which the Court deferred until after the jury returned its verdict. That motion addresses all liability theories. The Court previously noted that Live Nation’s motion raises serious issues.
“There is also a pending motion to strike the damages testimony on which the jury’s award was based. The Court deferred ruling on that motion as well, while noting significant concerns with the damages expert’s analysis.
“Of course, Live Nation can and will appeal any unfavorable rulings on these motions.
“The jury’s award of $1.72 per ticket applies to a limited number of tickets—those sold at 257 venues, which represent about 20% of total tickets—and only to purchases by fans (excluding brokers) in certain states over the past five years. Based on that scope, we believe the aggregate single damages figure would be below $150 million, which would be trebled. In connection with the DOJ settlement, Live Nation has already accrued $280 million toward state damages and civil penalty claims.
“Injunctive relief will be determined by the Court after the states make a remedy proposal, which we expect in the coming weeks. In the meantime, the Tunney Act proceedings regarding the DOJ settlement will continue. We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement.”