A total of 39 states - plus the District Of Columbia - are now backing the US government’s DoJ lawsuit against Live Nation, which accuses the live giant of anticompetitive conduct and seeks to force a sale of Ticketmaster. An amended version of the lawsuit also includes an additional claim that could treble the damages awarded in the case.
The original lawsuit filed back in May was already backed by Washington DC plus 29 US states. In it each participating state made various legal claims against Live Nation under its own relevant state-level laws. Some states included claims for damages on behalf of their citizens who have been negatively impacted by Live Nation’s alleged conduct.
The amended lawsuit notes that federal competition law in the US allows the Attorney General of each participating state to “obtain treble damages on behalf of natural persons” under the Clayton Act, in Title 15 of the United States Code. This means that the participating states can seek three times the monetary damages they would otherwise be due.
With ten more states joining the litigation yesterday - including Indiana, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Mexico, South Dakota, Utah and Vermont - there are now a total of 39 states plus the District Of Columbia involved in the legal action against Live Nation.
Confirming her state’s involvement, Iowa Attorney General Brenna Bird said, “When companies like Live Nation and Ticketmaster form monopolies, Americans are left to pay the price. I am suing to uphold the law and ensure that no American has to grapple with inflated prices or poor customer service because Live Nation and Ticketmaster have stifled competition”.
New York Attorney General Letitia James added, “Live Nation and Ticketmaster have abused the market to overcharge consumers and harm venues and artists, and my office will ensure this illegal conduct is stopped”, going on to say, “my office is seeking to recover damages for New York consumers who were overcharged by Live Nation and Ticketmaster. It’s time for a new era where fans, venues and artists are not taken advantage of by big corporations that run the world of live events”.
The US Department Of Justice filed its lawsuit against Live Nation in May after a lengthy investigation into allegations of anticompetitive conduct. It claims that Live Nation and its Ticketmaster subsidiary have exploited their market dominance in ways that breach US-wide federal competition law, as well as state-level laws.
If the DoJ lawsuit is successful, the damages bill could be significant. However, the DoJ’s bid to reverse the 2010 merger of Live Nation and Ticketmaster, by forcing Live Nation to sell its ticketing business, would arguably be a much bigger deal, and could have significant and long lasting ramifications for the entire live entertainment industry.
Live Nation remains confident that it will be able to defeat the lawsuit, while continuing to insist that none of the measures proposed by the US government would result in cheaper ticket prices. Its spokesperson said yesterday, “There is nothing new in the amended complaint - the lawsuit still won't solve the issues fans care about relating to ticket prices, service fees and access to in-demand shows. We look forward to sharing more facts as the case progresses”.