Live Nation illegally monopolized concerts and ticketing, jury finds

A federal jury ruled Wednesday that Live Nation illegally monopolized the ticketing market for major concerts in the United States.

The verdict followed five weeks of trial and nearly four days of deliberation in New York federal court. It marks a major win for a bipartisan group of more than 30 states that accused the company of overcharging fans and strong-arming venues into using its Ticketmaster service.

The case centered on Live Nation’s dominance after its 2010 merger with Ticketmaster. The company controls over 70 percent of ticketing and promotion for large amphitheaters. States presented evidence that Live Nation bullied venues and artists by tying concert promotions to exclusive use of Ticketmaster and threatening to withhold shows from non-compliant locations.

Internal messages showed executives describing a “moat around the castle” and using a “velvet hammer” against competitors. One executive wrote about fans, “These people are so stupid. I almost feel bad taking advantage of them.”

States’ lawyer Jeffrey Kessler asked the jury, “What type of company uses this language? A monopolist who believes itself above the law.”

Live Nation denied maintaining an illegal monopoly, arguing that artists control pricing and that it never forced exclusive ticketing deals.

Following the Justice Department’s separate settlement, the states now intend to seek a breakup of Live Nation as the remedy for the broken market. Live Nation shares dropped more than 6 percent after the verdict.

The judge instructed both parties to schedule the remedy phase of the trial.