Live Nation, U.S. DOJ to settle lawsuit alleging music industry monopoly

Ticketmaster's parent company was accused in an antitrust lawsuit of using coercive tactics to 'suffocate the competition' and driving up prices for concert fans.

U.S. Justice Department lawyers said Monday that it has tentatively settled its antitrust lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, striking a deal to ultimately lower ticket prices for consumers and end an illegal monopoly over live events in America.

But some states signaled they won’t join the deal and will continue an ongoing trial.

After the Justice Department announced the deal at the start of the trial day in Manhattan federal court, Judge Arun Subramanian called it “entirely unacceptable” that no one informed him of the tentative deal until late Sunday. A term sheet for the expected settlement was signed on Thursday, he said.

A senior Justice Department official, though, spoke effusively of the looming settlement on the condition of anonymity Monday during a phone call with journalists under terms set by the department to release some information about the proposed settlement.

Live Nation would pay a fine of up to $280 million and divest itself of at least 13 amphitheaters across the country as it opens up its ticketing processes so that competitors can share in the sale of tickets, the official said.

The official called it a “win-win for everybody” that will bring immediate relief for consumers and protect venues from retaliation when they choose companies other than Live Nation to handle tickets or promotions for events.

A double-digit number of states were expected to join the proposed deal, the official said.

New York Attorney General Letitia James said in a statement the Justice Department deal “fails to address the monopoly at the center of this case” and that she would not agree to it.