Live Nation antitrust trial begins: How the DOJ's case against Ticketmaster could reshape the concert industry

"The Justice Department initially argued that Live Nation held a monopoly across multiple parts of the live music industry. The company generates revenue from fans through ticket sales and from artists through venue rentals-arrangements that allegedly locked performers into using Ticketmaster to sell tickets."

"Last month, however, Judge Arun Subramanian dismissed the concert booking monopoly charges. As a result, the trial will focus more narrowly on claims that the company violated the Sherman Antitrust Act by forcing artists who use its venues to also use its promotional services, and by requiring other venues to sign exclusive contracts with Ticketmaster."

"Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster's market share and profit margin."

The Justice Department's antitrust lawsuit against Live Nation, parent company of Ticketmaster, enters trial after nearly two years of pretrial motions. The government alleges Live Nation maintains anticompetitive control over the concert ticket market, harming both fans and artists through inflated prices since the 2010 merger. A judge dismissed broader monopoly charges, narrowing the trial to focus on claims that Live Nation forces artists using its venues to use Ticketmaster's promotional services and requires other venues to sign exclusive Ticketmaster contracts. Live Nation contests these allegations, arguing the market remains competitive and that service fees primarily benefit venues rather than the company.

Read at Fast Company