After nearly two years of pretrial motions, opening arguments are expected to begin Tuesday in the Justice Department’s lawsuit against Live Nation. The case could have dramatic ramifications for the live events business—though that outcome is far from guaranteed.
The government alleges that the parent company of Ticketmaster has a chokehold on the concert ticket market, hurting both fans and artists. Live Nation denies that claim, arguing the market is broad and competitive, despite what the Justice Department contends.
The fight has been brewing for far longer than two years. Fans have voiced frustration since the 2010 merger between Live Nation and Ticketmaster, when live entertainment prices began climbing steadily. Here’s what you need to know about the trial.
What is the Justice Department claiming?
The Justice Department initially argued that Live Nation held a monopoly across multiple parts of the live music industry. The company generates revenue from fans through ticket sales and from artists through venue rentals—arrangements that allegedly locked performers into using Ticketmaster to sell tickets.
Last month, however, Judge Arun Subramanian dismissed the concert booking monopoly charges. As a result, the trial will focus more narrowly on claims that the company violated the Sherman Antitrust Act by forcing artists who use its venues to also use its promotional services, and by requiring other venues to sign exclusive contracts with Ticketmaster.
Live Nation denies the charges. “Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment,” the company wrote in a statement on its website, “such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin.”
Could Ticketmaster and Live Nation be split up?
Technically, yes. Realistically, probably not.
