When Live Nation settled with the US Department of Justice a few days into its antitrust trial last month, the expectation was that it would reach a similar settlement with the state attorneys general who were also suing it.
It did not, despite setting aside a $280m settlement fund for that exact purpose. The trial continued with the state AGs as the plaintiffs, and yesterday the jury in the case reached their decision: Live Nation has been operating as an illegal monopoly and overcharging fans.
The decision followed a five-week trial. It’s a ‘liability finding’, which means that the case now moves into its ‘remedies’ phase. District Judge Arun Subramanian will decide what financial penalties Live Nation should face – and also whether it should be forced to sell Ticketmaster.
“A jury found what we have long known to be true: Live Nation and Ticketmaster are breaking the law and costing consumers millions of dollars in the process,” said New York attorney general Letitia James in a statement.
“This is a historic and resounding victory for artists, fans, and the venues that support them,” said California attorney general Rob Bonta, who also used his response to criticise the US administration’s “dwindling antitrust enforcement”.
Live Nation issued its own statement too. “The jury’s verdict is not the last word on this matter. Pending motions will determine whether the liability and damages rulings stand,” noted the company.
Its statement provided more details on those matters, which had been deferred until after the jury reached a verdict, and signalled its intention to appeal “any unfavorable rulings on these motions”.
“We remain confident that the ultimate outcome of the States’ case will not be materially different than what is envisioned by the DOJ settlement,” added the statement.
In short, what happens next is more legal arguments, then likely appeals, as well as the judge’s ruling on remedies. You’d be advised not to hold your breath for a forced breakup of Live Nation and Ticketmaster though.
One recent parallel is a case that went against Google, but where the remedies ruling did not force it to sell its Chrome and Android businesses, but rather to share search data with rivals and stop signing exclusive contracts.
Live Nation’s fiercest critics will be disappointed if that’s the ultimate outcome here, but the impact of this lawsuit doesn’t stand or fall on a breakup. The changes the company makes – both voluntarily and at the behest of the judge – could still be very significant for the US live industry.
