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Ticketmaster and its parent company Live Nation, the world’s largest entertainment conglomerate, are facing formal motions in a U.S. court officially calling for their breakup.
Thirty-three U.S. states alongside the District of Columbia filed a motion Thursday asking the U.S. District Court of Southern New York to impose remedies in a historic antitrust case. They called for compensation for fans, stricter industry controls, and the selloff of amphitheatres as well as Ticketmaster, Live Nation’s online box office arm.
It comes in the wake of a landmark verdict in April by a jury in New York that found the company is an anti-competitive monopoly that has been overcharging fans.
The decision followed a six-week trial that heard how the company controls artists’ tours, venues and online ticketing, and has coerced some venues to using Ticketmaster under threat of losing out on hosting some of the world’s biggest acts.
Live Nation exec denies monopoly claims
In a statement, Live Nation criticized the states’ request.
“The jury verdict in this case cannot support a request for divesting Ticketmaster from Live Nation. The States’ request for a breakup is performative and political,” said the company’s executive vice-president Dan Wall in a statement late Thursday.
Earlier this month, Wall gave CBC News an exclusive interview defending the company.
“What the verdict says is that we have monopolized 20 per cent of the primary ticketing market, not the whole thing,” Wall told CBC’s Dave Seglins.
“I don’t call that a monopoly. And I’m actually confident that over time, the courts won’t call that a monopoly.”
WATCH | Feature interview with Live Nation executive vice-president Dan Wall:
Exclusive interview with Ticketmaster/Live Nation executive Dan Wall
Entire interview with Ticketmaster/Live Nation senior executive Dan Wall, in which he addresses dynamic pricing and calls for the company’s breakup following U.S. anti-trust verdict.
Asked what Live Nation lawyers will argue in the face of calls for the company to be broken up, Wall offered this: “That it’s both impossible legally and a terrible idea.” He asserted that Ticketmaster is unlike resale ticket websites whose sole motive is profit from ticket resales and speculation.
“All the rest are all scalper, all the time. I don’t know why in the world anyone would want Ticketmaster to be a third major ticketing company that will have every incentive to act like a SeatGeek or a StubHub.”
Case originally brought by Biden-era DOJ
This most recent case was originally brought by the U.S. Department of Justice (DOJ) under the Biden administration.
However, in March, Live Nation’s CEO Michael Rapino met with officials from the Trump White House and reached a surprise tentative settlement with the DOJ to settle the case and avoid a breakup of the company.
WATCH | Why Dem. Richard Blumenthal is critical of the company:
Why this U.S. senator is critical of Live Nation, Ticketmaster
Richard Blumenthal, a Democratic U.S. senator who led a subcommittee investigation of Live Nation and Ticketmaster, is frustrated by what he calls the company’s ‘misuse and abuse’ of its market dominance to constrain competition.
Thirty-three states and the District of Columbia rejected the deal and proceeded to trial.
The judge is not expected to hear arguments over the proposed breakup for several months. The case is expected to take at least a year before any formal orders by the court.
