Live Nation and Ticketmaster Antitrust Trial Kicks Off With DOJ Arguing That ‘The Concert Ticket Industry Is Broken’

The federal antitrust trial that could force the breakup of Live Nation and its Ticketmaster unit began Tuesday in Manhattan, with Justice Department lawyers arguing the concert giant leverages its dominance to stifle competition and inflate costs, while the company countered that it operates in a vibrant, competitive marketplace.

The lawsuit, filed in 2024 by the U.S. Justice Department and joined by 40 state attorneys general, accuses Live Nation of illegally maintaining monopoly power as the nation’s largest concert promoter, ticket seller and amphitheater operator. Twenty-five of the states are also seeking damages, alleging Ticketmaster overcharges fans.

“This case is about power, the power of a monopolist to control competition,” Justice Department attorney David Dahlquist told the 12-person jury, which was seated Monday, in opening statements before U.S. District Judge Arun Subramanian, the AP reported. “Today, the concert ticket industry is broken.”

Dahlquist pointed to Ticketmaster’s troubled 2022 presale for Taylor Swift’s Eras Tour, when its website crashed amid overwhelming demand and bot activity, prompting congressional hearings and legislative proposals – an episode he argued illustrates the company’s outsized control over the market. Prosecutors say they have internal Live Nation messaging describing the ticketing system as being “held together by duct tape” following the Swift debacle.

The government contends Live Nation controls about 86% of primary ticketing at major concert venues and wields significant power in the amphitheater market. Dahlquist said the company uses long-term, five- to seven-year exclusive contracts to lock in venues and prevent them from working with rival ticketing services. He also alleged Live Nation pressures venues to use both its promotion arm and Ticketmaster’s ticketing services or risk losing access to tours routed through Live Nation venues.

Live Nation attorney David Marriott rejected the monopoly claims, saying: “We’ll let the numbers do the talking. We do not have monopoly power.”

Marriott characterized the company as “all about bringing joy to people’s lives” through live music and argued that the Justice Department has overstated its market share and profits. He disputed government claims that Ticketmaster pockets $7 per ticket, saying it receives about $5 and clears less than $2 after expenses.

Marriott acknowledged that “there was a problem” during the Swift sale but said no other company could have handled what he described as the largest ticket bottleneck ever for a single artist. He added that there is broader context to the “duct tape” remark cited by prosecutors.

The defense also argued that exclusive, long-term contracts benefit venues by providing upfront payments and technological support.

“Saying you’re better is not a threat,” Marriott said, according to THR, pushing back against claims that Live Nation retaliates against venues that switch ticketing providers.

Before trial, Subramanian narrowed the scope of the case, dismissing claims that Live Nation monopolized concert promotions and bookings more broadly. The company still faces allegations that it pressures venues into exclusive ticketing arrangements and ties access to its amphitheaters to use of its promotion services.

Judge Subramanian told jurors they will hear evidence over the next six weeks before deciding whether Live Nation and Ticketmaster violated federal antitrust laws.

Witnesses expected to testify include Live Nation CEO Michael Rapino, other company executives, venue operators and competitors. John Abbamondi, former CEO of BSE Global, which owns Brooklyn’s Barclays Center and briefly switched from Ticketmaster to SeatGeek, is expected to testify about that decision. Artists and managers, including Drake’s manager Adel Nur and musician Kid Rock, are also on the witness list.

The Justice Department is seeking structural remedies, including potentially separating Live Nation and Ticketmaster, more than a decade after their 2010 merger. The government argues that a breakup would restore competition and help lower ticket prices.

Live Nation has said there is “no possible basis for breaking up Live Nation and Ticketmaster.”

Although the trial is now underway, questions about a potential settlement linger. The case, filed under the Biden administration, opened Tuesday amid speculation that negotiations were still going on behind closed doors.

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