Ticketmaster Just Agreed to a Major Settlement, But the Judge Called It 'Entirely Unacceptable'

The Justice Department and Live Nation Entertainment have reached a settlement in the federal antitrust lawsuit that accused the company of operating an illegal monopoly over the live events industry, but the deal is already facing significant resistance from multiple states, and the judge overseeing the case made clear he was not pleased with how it was handled.

What Was the Outcome of the Live Nation Settlement?

The announcement came Monday morning at the start of what was supposed to be a trial in federal court in Manhattan. Under the terms of the settlement, Live Nation has agreed to sell up to 13 of its amphitheaters nationwide, cap service fees at 15% for its venues, and require its Ticketmaster subsidiary to offer its ticketing technology to competing sellers like StubHub. Live Nation is also prohibited from retaliating against any venue that chooses a primary ticketer other than Ticketmaster.

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A civil fine is also part of the deal. If all states involved in the lawsuit sign on, the fine would total $280 million, though that figure is expected to change depending on how many states ultimately agree to the terms.

Not all of them will. New York Attorney General Letitia James announced her state will not accept the DOJ's settlement and will continue its own lawsuit against Live Nation. The District of Columbia requested a mistrial, and Texas has expressed "serious concerns" about the deal. Several other states have not yet agreed to sign on.

Judge Arun Subramanian, who is presiding over the case, was openly angry about the timing of the announcement. A term sheet for the potential settlement had reportedly been signed on Thursday — but no one informed him of the tentative deal until late Sunday night, just hours before trial was set to begin.

"It's entirely unacceptable," he said from the bench.

Live Nation opposed any mistrial, with its lawyers arguing the case should proceed.

What Did Live Nation Do?

The lawsuit, originally filed by the Justice Department alongside a coalition of states, alleged that Live Nation used its control over venues, ticketing, and artist management to strangle competition across the live entertainment industry. The settlement stops short of the breakup of Live Nation and Ticketmaster that some had called for — a point that critics of the deal are expected to press as states decide whether to continue fighting on their own.