Global entertainment giant Live Nation, owner of Ticketmaster, may be forced to break up its business after a U.S. jury ruled it abused monopoly power and exploited music fans by inflating concert ticket prices. Prosecutors described the verdict as a major victory to restore fairness to artists and consumers.
A federal U.S. jury decided that Live Nation Entertainment, the dominant concert market leader and owner of the well-known ticketing platform Ticketmaster, engaged in illegal monopolistic practices and overcharged concertgoers. This ruling could trigger significant changes in the worldwide music industry.
The verdict came after over seven weeks of trial in New York, where the jury found evidence that Ticketmaster, controlling more than 70% of the concert ticket market and over 80% of outdoor concert venues, blocked smaller competitors. This led to poorer service quality and higher ticket prices.
The jury also found that Ticketmaster overcharged customers by an average of $1.72 (about 55 baht) per ticket over several years. This figure will serve as the basis for calculating total damages.
Following the verdict, Judge Arun Subramanian may impose heavy financial penalties and legal measures forcing Live Nation to divest parts of its business or even separate Ticketmaster to restore free competition. This would make it easier for independent artists and promoters to book venues and reduce ticket prices in the future.
Although the U.S. Department of Justice and some states withdrew lawsuits after settlement talks, a coalition of attorneys general from 36 states led by California Attorney General Rob Bonta continued litigation and secured the victory. Bonta said, "This is a historic win for both red and blue states working together to protect consumers and artists from Live Nation's illegal conduct."
Live Nation issued a statement countering that "the jury's decision is not the final word on this matter." The company filed motions to exclude expert testimony used to calculate damages and insisted it has continually competed vigorously with other promoters and service providers.
Immediately after the verdict, Live Nation's shares dropped more than 6%, reflecting investor concerns about the future of the entertainment company that hosts over 159 million attendees annually.
,BBC