The leading live entertainment company in Las Vegas is operating an illegal monopoly, according to a court ruling in New York on Tuesday.
A jury has determined that Live Nation and its subsidiary, Ticketmaster, have violated federal and state antitrust laws by eliminating competition and raising ticket prices nationwide.
Nevada Attorney General Aaron Ford joined 33 states and the District of Columbia in the lawsuit, alleging the dominant companies unlawfully maintained and abused their monopoly to force out competing ticket services, venue owners and promoters.
The result, the suit alleged, has been higher ticket prices.
“I’m proud that a jury saw what is obvious to us. For too long, Live Nation has raked in billions from a monopoly that made it harder for Nevadans to see the artists they love, stifled artists and inflated the cost of ticket prices for countless music fans,” Ford said in a statement. “Our case was strong. Even after the federal government backed off, our bipartisan coalition stayed in and held the company accountable for conduct that harmed fans and artists alike. I look forward to the court ordering meaningful remedies that restore fairness to the market.”
Ford’s office also said the coalition will argue for remedies and financial penalties at a separate bench trial.
In a statement, Live Nation said, “The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand.”
The jury ruled Ticketmaster overcharged concertgoers by $1.72 per ticket at major concert venues through anticompetitive practices. The $1.72 figure is expected to serve as the basis for calculating total damages, which could reach hundreds of millions of dollars over the millions of tickets sold, and is separate from other fees associated with the tickets.
Live Nation took issue with that figure.
“The jury’s award of $1.72 per ticket applies to a limited number of tickets—those sold at 257 venues, which represent about 20% of total tickets—and only to purchases by fans (excluding brokers) in certain states over the past five years,” the company stated. “Based on that scope, we believe the aggregate single damages figure would be below $150 million, which would be trebled (increased by three times).”
Live Nation argues that in its settlement with the DOJ in March, the company “has accrued $280 million toward state damages and civil penalty claims.”
“Of course, Live Nation can and will appeal any unfavorable rulings on these motions.”
The impact on the live entertainment business and what would be the “meaningful remedies” in Las Vegas are not yet apparent.
The judge in the case, Arun Subramanian, will make that determination in a future proceeding. Divestments by Live Nation, or a split in the LN-Ticketmaster partnership, are not off the table.
Live Nation is the city’s dominant promoter, especially for residency productions (a single artist’s series of headlining shows in the same venue). The company controls about 70% of the concert business in Las Vegas, far ahead of No. 2 AEG Presents.
Live Nation owns House of Blues at Mandalay Bay and Brooklyn Bowl at Linq Promenade, and has signed exclusive booking agreements at the Colosseum at Caesars Palace, PH Live at Planet Hollywood, The Venetian Theatre, Palazzo Theatre, BleauLive Theater at Fontainebleau and Pearl at the Palms.
The company also books most shows at Sphere, Dolby Live and the Chelsea at Cosmopolitan. Ticketmaster, as a Live Nation subsidiary, is the primary ticket-seller for those venues.
In March, Live Nation settled its antitrust case with the Department of Justice. Among other provisions, the settlement required Live Nation to divest in the 13 outdoor amphitheaters it owned nationwide (none were in Nevada), limit exclusive ticketing contracts to a maximum of four years, cap service fees at its amphitheaters to 15%, and offer its booking technology to ticket sellers in competition with Ticketmaster (such as SeatGeek and StubHub) to provide tickets to Live Nation events.
But in the face of that ruling, Ford and the bipartisan collection of states continued the lawsuit it initially filed against Live Nation and Ticketmaster in May 2024. An appeal from Live Nation is on the horizon, further extending this high-stakes dispute.
John Katsilometes’ column runs daily in the A section. Contact him at [email protected]. Follow @johnnykats on X, @JohnnyKats1 on Instagram.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source neon.reviewjournal.com ’
