Live Nation, the parent company of Ticketmaster, has reached a surprise settlement with the US Department of Justice in an antitrust case, just one week after the trial began. Under the agreement announced on Monday, Live Nation will create a $280m settlement fund for participating states and will open parts of its platform to rival ticketing companies.
The settlement also requires Live Nation to divest from exclusive booking agreements with 13 amphitheaters in the US and cap service fees at 15% of the ticket price. Additionally, it limits long-term exclusivity contracts used by Ticketmaster when partnering with venues.
An attorney for New York state had told jurors last week that Ticketmaster keeps an average of $7.58 per ticket for events at major concert venues, alleging the company dominates live-event markets to the detriment of artists, venues and fans. The Justice Department was set to argue that Live Nation holds illegal monopolies in ticketing and venue markets.
Live Nation's CEO Michael Rapino said in a statement: 'Today marks a major step in improving the concert experience for artists and fans throughout the United States. By giving artists greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans, we are putting more power where it should be – with artists and fans.'
However, a bipartisan group of attorneys general from 30 states, including New York, have refused to accept the settlement terms, arguing it does not address Live Nation's dominance. New York Attorney General Letitia James stated: 'The settlement recently announced with the US Department of Justice fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers. We cannot agree to it.' They may pursue a new trial.
