The U.S. Justice Department announced a tentative settlement on Monday with Ticketmaster and its parent company, Live Nation. This follows a high-profile antitrust lawsuit against the entertainment giant. Since merging in 2010, the combined Live Nation and Ticketmaster have controlled the majority of ticket sales and venue bookings in the United States, leaving artists with little choice but to work with them.
Customers have expressed frustration for years over dynamic pricing issues that can drive ticket costs up by thousands of dollars, often without consulting the artists. The problematic ticket buying process was highlighted during sales for Taylor Swift’s Eras tour, which were so aggravating they triggered government scrutiny.
According to reports, the settlement would require Live Nation to pay a fine of up to $280 million and divest at least 13 venues to give competitors more opportunity. However, several state Attorneys General involved in the lawsuit are not satisfied with the terms.
New York Attorney General Letitia James stated that the settlement fails to address the monopoly at the center of the case and would benefit Live Nation at the expense of consumers. She confirmed her office would not agree to it. Twenty-six out of thirty state attorneys general who sued alongside the Justice Department have joined her in continuing the lawsuit.
Washington Attorney General Nick Brown also said the settlement does not adequately remedy the issue for concertgoers. He argued that for too long, Live Nation has profited from a monopoly that makes it harder for consumers to see artists, stifles artists themselves, and increases ticket prices for music fans.
The trial had proceeded for less than a week before the Justice Department and Live Nation agreed to this settlement. During that short time, notable testimonies emerged.
John Abbamondi, former CEO of the NBA’s Brooklyn Nets and the Barclays Center, spoke about his 2021 decision to work with a different ticket sales company instead of Ticketmaster. A recorded phone call between Abbamondi and Live Nation CEO Michael Rapino was played in the courtroom. The conversation was described as adversarial and expletive-laden.
Abbamondi told the jury that Rapino made a comment on the call which he interpreted as a veiled, or not-so-veiled, threat. He believed Rapino suggested Live Nation would book fewer concerts at the Barclays Center as a result of the ticketing change.
Live Nation reported last month that it sold over 646 million tickets last year and put on over 54,000 events internationally. Within the United States, the company owns 150 venues and invested $1 billion last year to build an additional 18 live music venues.