Live Nation's Antitrust Lawsuit Will Proceed as Federal Judge Denies Dismissal Motion
The Department of Justice's antitrust lawsuit against Live Nation will proceed after a federal judge denied the company's motion to dismiss the case. The lawsuit, filed by the DOJ and 30 state attorneys general, alleges monopolistic control over performance venues across the United States.
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Photo Credit: Taylor Swift by Paolo Villanueva / CC by 2.0
US District Judge Arun Subramanian found sufficient evidence for "tying" claims, where Live Nation allegedly requires artists to use their concert-promotion services to access Live Nation-operated venues. The company currently controls approximately 80% of primary ticketing at major concert venues and 70% of large amphitheater productions.
While Live Nation argued that artists can work with rival promoters who rent venues, Judge Subramanian rejected this defense. He stated that Live Nation's policies effectively prevent artists from choosing their preferred promoters if they want to perform at Live Nation-controlled venues, amounting to coercion.
The judge noted that promoters book venues on behalf of artists, making artists the actual purchasers of both venue access and promotion services. This relationship could constitute a viable tying claim if evidence shows artists are forced to use Live Nation as their promoter to access the company's amphitheaters.
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