After several weeks of trial and several days of deliberations, a New York jury found that Live Nation used its dominant position to limit competition and drive up ticket prices.
According to the court, concert giants had a harmful monopoly on large concert halls. This means the company will be defeated in a lawsuit involving claims brought by dozens of US states.
Monopoly of famous companies organizing concerts. Consumers were supposed to overpay
According to the findings, consumers overpaid an average of about $1.72. for each ticket.
The case concerned a business model in which Live Nation simultaneously controls:
- organizing concerts,
- infrastructure (halls and amphitheatres),
- ticket sales via Ticketmaster.
According to the prosecution, the company took advantage of this position by forcing venues to use only Ticketmaster or threatening consequences if they cooperated with competitors.
“It's time to hold them accountable,” said Jeffrey Kessler, a lawyer representing the states, in closing arguments. calling Live Nation a “monopolistic tyrant” that raises ticket prices.
Ticketmaster and Live Nation with legal problems. Hundreds of millions of dollars at stake
The case was brought by a coalition of over 30 US states, which are demanding damages of up to $700 million.
The final amount of penalties and possible remedial measures – including even a possible division of the company – will be determined by the court in the next phase of the proceedings.
After the verdict was announced, Live Nation's shares fell, which shows the scale of the risk to the company's business model.
The company does not agree with the decision and announced an appeal, arguing that its success results from efficiency and scale of operations, and not from monopolistic practices.
There were already problems during Taylor Swift's huge tour
The trial was the culmination of many years of allegations against Ticketmaster, which intensified, among others, after problems with ticket sales for Taylor Swift's 2022 tour.
Already in 2024, the US Department of Justice and dozens of states filed a lawsuit accusing the company of illegally monopolizing the live events market.
While an earlier settlement with the U.S. government allowed the company to avoid an immediate breakup, a jury verdict could change the situation.
If the court decides on stricter measures, the following are possible: high financial penalties, forced changes in the business model, and even the separation of Live Nation and Ticketmaster.
The verdict against Live Nation may set a precedent for the entire entertainment industry.
It may open the market to greater competition, but also redefine the way tickets are sold and concerts are organized around the world.
