Live Nation found guilty of monopolistic business practices

Staff Report: PNN

A federal jury in the United States has found entertainment giant Live Nation guilty of operating an illegal monopoly. The verdict has created uncertainty about the future of the company and its ticketing subsidiary Ticketmaster. Even the possibility of breaking up the company has not been ruled out.

The verdict delivered on Wednesday is considered a significant chapter in a long legal battle. Earlier in 2024, the US Department of Justice and attorneys general from 40 states filed a monopoly lawsuit against Live Nation. The complaint stated that after the 2010 merger between Live Nation and Ticketmaster, the company began controlling a large share of ticket sales and venue bookings, reducing market competition.

During the trial, some internal Slack messages from the company were also made public, showing employees making derogatory comments about customers and joking about overcharging. The prosecution argued that these messages reflect the company’s attitude toward customers.

However, Live Nation described these comments as “off-the-cuff” conversations and claimed they do not reflect company policy or actual decision-making.

Previously, Live Nation reached a preliminary settlement with the Department of Justice, which included a $280 million fine and a requirement to sell or separate at least 13 venues. However, after the jury’s latest verdict, the penalties could become more severe.

A final decision will now be made by the court. Judge Arun Subramanian will determine the next steps.

Analysts say that if Live Nation and Ticketmaster are ordered to be broken up, it could significantly reshape the US entertainment industry and potentially reduce high ticket prices and excessive fees that have long been criticized.