Ticketmaster parent Live Nation faces a potential antitrust reckoning as a landmark case accusing the music giant of running an illegal monopoly over the live music industry kicks off in Manhattan federal court.
Jury selection began Monday in the civil case, which is expected to last about six weeks. The Justice Department and a coalition of state attorneys general allege that the 2010 merger between Ticketmaster and Live Nation has stacked the deck against competitors and led to exorbitant sky-high ticket prices for Taylor Swift fans and other countless other concertgoers.
Live Nation bigwigs Michael Rapino and Joe Berchtold and each expected to testify during the trial, as are President Trump ally Kid Rock and music industry honchos like Irving Azoff and Louis Messina – the latter of which runs the company that oversees Swift’s ultra-lucrative tours.
From the sports world, executives from the Brooklyn Nets and Dallas Cowboys are also expected to testify about their experiences, including claims that Live Nation forces arena operators to use Ticketmaster or risk losing access to its concerts.
The case could have major ramifications for the music industry and could even result in a breakup of Live Nation if jurors ultimately side against the company. The company could also be ordered to pay damages to consumers in various states.
The case is moving forward for now despite a weekslong scramble by Live Nation to settle the case before it could go to court. DOJ officials rejected multiple efforts by Live Nation to reach an agreement – though a deal could still be struck during or after the trial, Bloomberg reported.
The DOJ will make its arguments during a period of internal upheaval that included the recent exit of antitrust chief Gail Slater, who resigned last month amid reported infighting over how the agency should handle key cases, including Live Nation.
Live Nation has said it isn’t responsible for surging ticket prices and has laid the blame in part on online ticket scalpers who snap up seats and resell them at a markup.
“The claim that Live Nation and Ticketmaster are responsible for high concert ticket prices and fees was, and is, false,” Live Nation executive vice president of regulatory affairs Dan Wall said in a recent statement.
Last month, US District Judge Arun Subramanian shut down a request by Live Nation to dismiss the lawsuit.
The DOJ case is just one headache for Live Nation, which faces a separate bombshell lawsuit filed by the Federal Trade Commission. That lawsuit accuses Live Nation of turning a blind eye to bots that resell millions of tickets online.
The company has also faced heat on Capitol Hill, with Sen. Marsha Blackburn recently blasting Live Nation for what she called a “very insufficient” response to the bot allegations.
Bringing down ticket prices has been a pet issue for Trump, who issued an executive order last year asking the FTC to look into the problem.
Ticketmaster controls a massive share – up to 70% to 80%, according to some experts – of the primary ticket sale market.
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