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In a significant development on Monday, the Justice Department announced a tentative settlement in its antitrust lawsuit against Ticketmaster and its parent company, Live Nation Entertainment. The proposed agreement aims to dismantle what has been described as an illegal monopoly over live events in the United States, ultimately leading to reduced ticket prices for consumers.
While this announcement marks a potential turning point, several states have expressed their intention to abstain from the agreement, opting instead to pursue an ongoing trial.
The Justice Department’s disclosure, made as the trial commenced in a Manhattan federal court, was met with discontent by Judge Arun Subramanian. He criticized the late communication, noting that he was only informed of the tentative settlement on Sunday, despite a term sheet being signed the previous Thursday.
“It’s entirely unacceptable,” Judge Subramanian remarked, reflecting the frustration over the lack of timely notification.
Despite the controversy, a senior official from the Justice Department, speaking under anonymity during a press briefing, praised the prospective settlement. The official outlined that Live Nation would face a fine of up to $280 million. Additionally, the company would be required to divest at least 13 amphitheaters nationwide and overhaul its ticketing operations to allow competitors a fair opportunity in ticket sales.
Live Nation would pay a fine of up to $280 million and divest itself of at least 13 amphitheaters across the country as it opens up its ticketing processes so that competitors can share in the sale of tickets, the official said.
The official called it a “win-win for everybody” that will bring immediate relief for consumers and protect venues from retaliation when they choose companies other than Live Nation to handle tickets or promotions for events.
A double-digit number of states were expected to join the proposed deal, the official said.
New York Attorney General Letitia James said in a statement the Justice Department deal “fails to address the monopoly at the center of this case” and that she would not agree to it.
“My attorney general colleagues and I have a strong case against Live Nation, and we will continue our lawsuit to protect consumers and restore fair competition to the live entertainment industry,” James said.
A release containing her statements said New York state was joined in its decision to continue pursuing claims by attorneys general in Arizona, California, Colorado, Connecticut, Illinois, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming and the District of Columbia.
In a release, Washington State Attorney General Nick Brown said the bipartisan group of state attorneys general who joined the Justice Department’s lawsuit in May 2024 would continue because the “case against Live Nation is strong, and the state coalition is committed to holding the company accountable for its illegal behavior, protecting consumers and restoring competition to this market.”
Adam Gitlin, a lawyer for the District of Columbia, told Subramanian that several states had not decided what they would do, including Texas, Florida and Louisiana. He said Texas had expressed “serious concerns” about the deal.
Gitlin requested a mistrial on Monday, a week after opening statements, but David Marriott, a lawyer for Live Nation, opposed the request. The judge informed the jury of the proposed deal and told jurors that “certain states are proceeding” with their claims and the trial was expected to resume next week.
Live Nation didn’t immediately respond to a request by The Associated Press for comment.
The continuation of the trial will leave the states to press claims to further dismantle a monopoly the Justice Department said was squelching competition and driving up prices for fans.
The case, brought under President Joe Biden’s Democratic administration in 2024, accused Live Nation of using threats, retaliation and other tactics to “suffocate the competition” by controlling virtually every aspect of the industry, from concert promotion to ticketing.
The Justice Department accused Live Nation of engaging in a slew of practices that have allowed it to maintain a stranglehold over the live music scene. The Justice Department has said the company uses long-term contracts to keep venues from choosing rival ticketers, blocking venues from using multiple ticket sellers and threatening venues that they could lose money and fans if they don’t choose Ticketmaster.
Live Nation has maintained that artists and teams set prices and decide how tickets are sold.
Ticketmaster and Live Nation Entertainment, based in Beverly Hills, California, have a long history of clashes with major artists and their fans, including Taylor Swift and Bruce Springsteen.
Ticketmaster, which was established in 1976 and merged with Live Nation in 2010, is the world’s largest ticket seller across live music, sports, theater and more.
