New York AG Letitia James Demands Live Nation Breakup

Photo Credit: Letitia James (NY AG) by Matt Cohen / CC by 2.0

After a jury found Live Nation liable for monopolization earlier this month, 33 states plus D.C. are pushing for a breakup of Live Nation-Ticketmaster. Here’s the latest.

While a jury determined on April 15 that Live Nation-Ticketmaster was liable for operating as a monopoly, the final decision as to the total monetary damages and other structural remedies remains forthcoming. That could even include a breakup of the company—an outcome that the 33 states plus Washington, D.C., which proceeded with the case after the Department of Justice settled with Live Nation mid-trial, sincerely hope for.

Now, an op-ed written by New York Attorney General Letitia James and Tennessee Attorney General Jonathan Skrmetti for Rolling Stone has outlined the implications of such a historic trial and what a nonpartisan issue antitrust law really is.

“[Live Nation’s] CEO led by example,” the two AGs wrote. “For instance, he banned customers from bringing lawn chairs to an outdoor venue—for their safety, he said—and then turned around and made millions of dollars renting them lawn chairs.”

“For decades, fans said the system was rigged. Artists complained about excessive fees. Venue owners were forced to contend with Live Nation’s bullying. In functional markets, companies that behave that way won’t last long. The live events market is broken,” they continued.

“That’s why we built a coalition of 40 state attorneys general to sue Live Nation and Ticketmaster for maintaining illegal monopolies in the live events industry. Our lawsuit showed that they unfairly manipulated the marketplace in their favor. They locked venues into exclusive contracts, forced competitors out of the industry, and limited artists’ choices of where they could perform.”

“After a five-week trial, our coalition of attorneys general proved that Live Nation and Ticketmaster’s illegal monopoly drives up prices and hurts fans, artists, and venues across the country,” the op-ed asserted. “The verdict was clear: we won on every count. […] The evidence was overwhelming.”

The AGs point out that rock band Pearl Jam raised the alarm on Ticketmaster’s market dominance back in 1994—and little has changed until now. Instead, as Live Nation and Ticketmaster joined forces, it’s only become more egregious, as affirmed by the recent outcome of the landmark trial.

“This verdict is a turning point for the live events industry [and] affirms that no company, no matter how powerful, is above the law. And it proves that strong antitrust enforcement works,” they concluded. “This was a bipartisan effort, led by state attorneys general from across the country and across the political spectrum, because this isn’t a partisan issue.”

“We are going to fix this broken system. In the coming months, we will ask the court to impose remedies that restore competition and deliver real relief to fans. That includes financial consequences for the company and, more importantly, a breakup of Live Nation’s monopoly.”

Whether the states’ push for a breakup of Live Nation-Ticketmaster will see results, particularly after the DOJ’s earlier settlement with the company, remains to be seen. It’s possible the settlement will be null and void given the states’ victory, but for now, it’s too early to tell. Keep watching this space for updates.