‘The concert ticket industry is broken,’ justice department says as Ticket Master trial begins
ticket master and parent Live Nation are facing antitrust claims in a Manhattan courtroom after the US Department of Justice and the attorneys general of New York and 38 other states plus Washington, D. C. accused the companies of abusing market power, an attorney told jurors on Tuesday (ET). The case could lead the department to seek a breakup of Live Nation and Ticketmaster or win compensation for ticket purchasers. Jurors heard claims that Ticketmaster keeps sizeable fees, that fans overpaid, and that venue deals and threats harmed artists, venues and fans.
Ticket Master fees, alleged overcharges and the courtroom numbers
Jonathan Hatch, an attorney for New York state, cited an expert estimate that Ticketmaster keeps an average $7. 58 of each ticket for events at major concert venues and keeps more in fees than competitors such as AXS. Hatch told jurors the states seeking damages estimate fans overpaid between $1. 56 and $1. 72 per ticket, and added: “We are talking about real money coming out of people’s wallets. “
Live Nation pushed back in court. David Marriott, counsel for Live Nation, told jurors Ticketmaster takes about 5% of what fans pay and argued the company is not a monopolist and faces fierce competition. “Every customer we get is a hard-fought battle in a competitive marketplace, ” Marriott said.
Venue pressure, recorded calls and venue executives on the stand
Witness testimony moved beyond fees to venue conduct. John Abbamondi, then CEO of BSE Global, told the jury he heard a tense call when his arena chose a different ticketing partner; Abbamondi said, “the nervous guy was me and the angry guy was Michael. ” Abbamondi and Mitch Helgerson, chief revenue officer for the Minnesota Wild, said that when venues considered switching platforms, executives at Live Nation-Ticketmaster threatened the loss of Live Nation-promoted concerts.
Abbamondi said his venue still signed with a rival and later “saw a dramatic decline in Live Nation shows that were booked at the arena. ” The testimony included references to competition among ticketing platforms and to artists whose scheduling was affected.
Prosecutors, judge rulings and what comes next
DoJ attorney David Dahlquist opened with a forceful assessment: “Today, the concert ticket industry is broken, in fact the concert industry itself is broken, ” he told jurors. The department and the state attorneys general have framed the case as one about monopoly control that harms multiple parts of the live-event ecosystem.
US District Judge Arun Subramanian has cut several claims from the case but declined to pause the trial to allow Live Nation to appeal that decision. The US Federal Trade Commission has filed a separate case alleging problems with exploitative resellers and rule enforcement.
What’s next: jurors will hear testimony expected from artists and industry executives, including named performers and rival-ticketing and venue executives, as the court considers whether remedies should include damages for ticket buyers or structural relief for the market. The unfolding testimony will test whether ticket master and Live Nation are judged to have crossed legal lines and what relief judges may order.
