Live Nation, Ticketmaster antitrust case heads back to court after limited state settlement
More than 30 states will resume their antitrust trial against Live Nation Entertainment and its Ticketmaster ticketing unit on Monday in New York after negotiations this week did not bring many states into a settlement reached by the Justice Department, lawyers told the judge Friday.
At the hearing, lawyers said seven states — Arkansas, Iowa, Mississippi, Nebraska, Oklahoma, South Carolina and South Dakota — were joining the Justice Department in settling with the live music company. The other 32 states, along with the District of Columbia, plan to continue trying to persuade a jury that Live Nation and Ticketmaster are suppressing competition and raising prices for fans.
The states’ case alleges that the companies used threats, retaliation and other tactics to control virtually every aspect of the industry, from concert promotion to ticketing. Live Nation and Ticketmaster dispute that characterization, saying they do not monopolize their industry and that artists, sports teams and venues set prices and decide how tickets are sold.
A jury had begun hearing testimony before the Justice Department announced that it had reached a deal with the companies. The Justice Department said the agreement would save the public money by allowing competitors of Live Nation into some ticket markets where they are currently excluded, a move that drew criticism from many states.
Those states said the federal government did not secure enough concessions from the company. Testimony was then paused for a week as the parties sought additional settlement negotiations, but with no breakthrough, U.S. District Judge Arun Subramanian said Friday that the trial would move forward.
In addition to the settlement fight, the case has also included disputes over trial exhibits. Subramanian ruled against Live Nation’s objection to evidence that included a private conversation between company employees in which one employee discussed the prices Live Nation charges for VIP area access at a Tampa, Florida, amphitheater.
The exhibits included the employee characterization that the VIP access prices were “outrageous,” and that customers paying the fees “are so stupid,” along with the lines “I almost feel bad taking advantage of them” and “BAHAHAHAHAHA.”
Live Nation had opposed the exhibits, arguing that they were “passing references to non-ticket ancillary products” — including VIP club access, premier parking or lawn chair rentals — sold to concertgoers at two amphitheaters in Florida and Virginia.
Subramanian rejected that framing, saying the overall fan experience is relevant to the relationship between performers and their customers and that some artists might not want to perform if fans are charged too much for lawn chairs or other amenities. The judge said the situation was similar to potential harm in the film industry if movie theaters charged $50 for concessions such as soda, candy and popcorn.
Live Nation said in a statement issued Thursday that it had just learned about the private employee conversation and planned to look into it promptly. The company said the conversation “absolutely does not reflect our values or how we operate.”
At an earlier hearing on Tuesday, Live Nation attorney Dan Wall told the judge the chance that all states would settle their claims this week was “about zero.”