Live Nation and Ticketmaster Must Face Antitrust Claims, Judge Rules

A federal judge has ruled that Live Nation Entertainment Inc. and its subsidiary Ticketmaster must continue to face a consumer-led antitrust lawsuit, rejecting most of the companies’ attempts to dismiss the case.

According to Bloomberg, the decision was handed down by Judge George H. Wu of the U.S. District Court for the Central District of California on April 11.

The plaintiffs allege that Live Nation and Ticketmaster conspired to dominate the ticketing services market, which they say resulted in inflated ticket prices for consumers.

The court found that the lawsuit plausibly claims that the companies engaged in monopolistic practices. In particular, the plaintiffs assert that Ticketmaster controls roughly 60% of a specific submarket within the ticketing industry.

Related: Live Nation Denies Wrongdoing but Agrees to $20M Shareholder Settlement

Per Bloomberg, Judge Wu determined this was enough to establish a plausible claim of market power—an essential element in antitrust litigation.

The ruling allows the case to move forward, giving consumers a chance to further pursue their claims that Live Nation and Ticketmaster’s business practices have unfairly harmed competition. Bloomberg reports that the plaintiffs contend the companies have used their dominant position to suppress rivals and entrench their market share.

While the court did not rule on the ultimate merits of the claims, Judge Wu’s decision means the companies must now face the next phase of the litigation. The lawsuit highlights ongoing concerns from consumers and lawmakers about consolidation in the live entertainment and ticketing industries.

Source: Bloomberg