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Jury Finds Live Nation Illegal Monopoly
A Manhattan federal jury found Live Nation liable for operating as an illegal monopoly.
“A federal jury found Wednesday that Live Nation has been operating as an illegal monopoly”
The jury determined that concertgoers paid an extra $1.72 per ticket as a direct result of Live Nation's anti-competitive practices.
The ruling came despite a tentative settlement the DOJ had reached with Live Nation just weeks earlier.
34 of the attorneys general pressed forward against the settlement.
Judge Subramanian still has to determine remedies at a later date.
Slack Messages Reveal Corporate Attitude
Internal Slack messages surfaced during the trial showing Live Nation employees joking about taking advantage of customers.
An employee said, 'These people are so stupid, I almost feel bad taking advantage of them BAHAHAHAHAHA.'
Live Nation argued these remarks represented off-the-cuff banter, not policy.
Rapino disavowed the exchange during his testimony, saying it’s disgusting.
States Press Forward After DOJ Settlement
The DOJ reached a settlement with Live Nation, but 34 states refused to sign on.
“A coalition of 33 states, including market leaders California, New York and Texas, decided to keep litigating on their own”
The jury found in favor of the states on every claim.
The states pushed for a breakup of Live Nation and Ticketmaster.
California Attorney General Rob Bonta called the decision a historic and resounding victory.
Potential Breakup and Next Steps
Judge Subramanian will decide the appropriate remedy.
The jury's damages finding applies to a limited number of tickets.
Live Nation said it remains confident the ultimate outcome will not be materially different than the DOJ settlement.
The company is expected to appeal the ruling.
The verdict caps off the most significant effort yet to rein in the company.