Courtroom Clash: Live Nation-Ticketmaster Faces Monopoly Allegations
In a Manhattan courtroom, the U.S. Justice Department alongside 40 state and district attorneys general, presented their case against Live Nation-Ticketmaster, alleging the company holds a monopolistic grip on the concert ticketing industry. Lead DOJ counsel David Dahlquist argued that Live Nation has created a 'flywheel' of power, compelling venues to remain within its ecosystem by threatening or retaliating against those considering alternatives. Dahlquist emphasized that the concert ticketing industry is dominated by Live Nation and its subsidiary, Ticketmaster, which he claims has led to a 'broken' industry.
Live Nation, however, painted a more positive picture, with its counsel David Marriott asserting that the company is focused on spreading joy and that there are more concert venues available than ever. Marriott's presentation included vibrant images of concerts and artists, suggesting that Live Nation's dominance is not a threat but a testament to its success. The ongoing trial will determine whether Live Nation-Ticketmaster has illegally monopolized ticketing markets and large amphitheater use, with potential outcomes including a breakup of the company if found liable.
The DOJ and states must demonstrate that Live Nation-Ticketmaster, which they estimate holds an 86% market share in primary ticketing and 78% in amphitheater use, has used its dominance to stifle competition. A key example cited is the Barclays Center's negotiations, where the venue left and then returned to Ticketmaster, allegedly facing punishment for attempting to switch providers. The DOJ also plans to reference the Taylor Swift ticketing debacle as evidence of underinvestment in technology, which Marriott attributed to a cyberattack that Ticketmaster managed effectively.
Marriott sought to humanize Live Nation, introducing executives and sharing personal anecdotes about live events. He argued that Ticketmaster's market share is overstated by the DOJ, claiming it is only 40% in ticketing and 18% in venues when including stadiums and arenas. He suggested that the Barclays Center's return to Ticketmaster was due to SeatGeek's failure rather than retaliation from Live Nation. Marriott acknowledged a heated call involving Live Nation CEO Michael Rapino but dismissed it as frustration rather than a threat.
The trial will continue with testimonies from former Barclays Center CEO John Abbamondi, a top executive from the Minnesota Wild Hockey Club, and SeatGeek's co-founder and CEO. The jury will also hear from artists like Kid Rock and Ben Lovett, and music fans, before deciding whether Live Nation's portrayal of a joyful concert industry holds true.