PA Attorney General: Live Nation Guilty Of Creating Monopoly Of Live Entertainment
by Alex Lloyd Gross
Pennsylvania Attorney General Dave Sunday announced yesterday that Live Nation was running a monopoly with Ticketmaster, which they owned, to inflate prices of concert tickets and other live events. A jury found the company liable.
Even though the company forged a recent settlement agreement between the companies and the U.S. Department of Justice. Multiple states attorney’s general did not think that settlement went far enough and elected to continue their legal action against Live Nation.
The jury found the companies liable on all monopolization counts, and awarded damages to the states. The federal judge who oversaw the trial will determine remedies for the illegal conduct at a separate proceeding on a later date.
The pairing of Ticketmaster and Live Nation has impacted the public to the tune of billions of dollars over time, Pennsylvanians spent approximately $1.5 billion dollars on live entertainment, according to the Bureau of Economic Analysis.
Allegations in the lawsuit include evidence of Live Nation’s engagement in anti-competitive practices to maintain its monopoly, as well as allegations that:
● Live Nation has maintained its anti-competitive monopoly in ticketing markets by locking up venues through restrictive long-term, exclusive agreements and by threatening that venues will lose access to Live Nation-controlled tours and artists if they sign with a rival ticketing company.
● Live Nation leverages its extensive network of amphitheaters and other venues to force artists to select Live Nation as a promoter instead of its rivals, maintaining its promotions monopoly.
● Live Nation’s conduct has harmed fans through higher fees, lack of transparency, fewer consumer choices, and stifling innovation.
The lawsuit asks the court to restore competition in the live entertainment industry by:
● Ordering Live Nation to divest Ticketmaster.
● Awarding financial compensation for consumers who paid more than they should have for tickets in a competitive market.
● Prohibiting Live Nation from engaging in its anticompetitive practices.
Live Nation stock closed up yesterday at $158.30 per share.