States Push for Breakup of Live Nation-Ticketmaster After Monopoly Verdict

According to a recent court filing submitted to Judge Arun Subramanian, the states are seeking a series of remedies that include forcing the divestiture of Ticketmaster and restricting Live Nation from re-entering the primary ticketing market for a period of time. The filing also calls for tighter controls on the company’s contractual practices and venue operations, according to a statement included in the filing.

The latest move comes after a federal jury last month found that Live Nation unlawfully maintained monopoly power in the live entertainment and ticketing industries. The lawsuit was originally brought two years ago by the U.S. Department of Justice along with more than 40 states.

Per statement filed with the court, the states are asking for broad structural and financial penalties designed to reshape the concert promotion and ticketing business. Among the proposed remedies are limits on Ticketmaster’s ability to extend or enforce existing contracts, restrictions on future exclusive ticketing agreements, and requirements that Live Nation divest certain large amphitheaters it owns.

The filing also seeks restrictions on additional amphitheater acquisitions and changes to agreements that currently give Live Nation influence over concert bookings at large venues. State attorneys general further requested measures aimed at preventing the company from tying venue access to its concert promotion services, according to a statement submitted in court documents.

Read more: States Press Ahead With Live Nation Antitrust Trial After Federal Settlement

Judge Subramanian previously indicated during a conference with the parties that a settlement proposal reached between Live Nation and the Department of Justice after the first week of trial would serve as the minimum level of punishment facing the company.

That proposed settlement, which still requires judicial approval and must undergo review under the Tunney Act, would require Live Nation to make Ticketmaster’s systems more accessible to competing ticketing companies. The agreement would also dissolve Oak View Group’s preferred ticketing arrangement with Ticketmaster and require Live Nation to pay roughly $200 million in damages to participating states.

In addition to structural changes, the states are pursuing financial remedies tied to ticketing fees paid by consumers. Per statement in the filing, the coalition is seeking compensation for residents who allegedly paid inflated ticket fees at major concert venues during the period covered by the lawsuit.

The states are also requesting civil penalties intended to punish the violations and deter similar conduct in the future. Other proposed remedies include disgorgement of profits connected to ticketing fees collected at venues owned, operated, or controlled by Live Nation, along with restitution for consumers who purchased tickets during the alleged monopoly period.

The filing additionally calls for ongoing oversight measures to ensure compliance with any court-ordered remedies. Those provisions would include monitoring of divestiture processes, supervision of behavioral restrictions, and systems designed to detect attempts by Live Nation to evade the court’s ruling, according to a statement filed by the states.

Source: Sports Business Journal