A federal court in the United States has ruled that Live Nation operated as an illegal monopoly in violation of antitrust laws. The decision came just weeks after the company reached a preliminary agreement with the Department of Justice to resolve the case without a trial.
The jury verdict in the US District Court for the District of Columbia found that Live Nation maintained monopoly power in ticketing and live event promotion. The company controls about 80% of the primary ticketing market through its subsidiary Ticketmaster. The ruling follows a two-year investigation by the DOJ into allegations that Live Nation used its dominance to stifle competition.
Last month, Live Nation and the DOJ announced a tentative settlement. The agreement proposes structural changes including the divestiture of Ticketmaster’s business lines and restrictions on exclusive contracts. The deal remains under review by a federal judge. If approved, it would prevent Live Nation from retaliating against venues that choose competing ticketing services.
The court’s findings contradict Live Nation’s defense that its market share resulted from superior service rather than anti-competitive practices. The company has argued that breaking up Ticketmaster would harm artists and fans by reducing efficiency in ticket distribution.
Legal experts say the timing of the verdict complicates the settlement. The DOJ now faces pressure to justify why a negotiated remedy is sufficient given the jury’s conclusion that Live Nation acted unlawfully as a monopoly.
Source: techcrunch.com