Judge calls Justice Department delay in disclosing settlement talks with Live Nation “mind-boggling” as procedural controversy rattles high-stakes antitrust trial
"Robbing them blind." "Velvet hammer." "Boil the frog." These phrases, taken from the internal documents of Live Nation, the concert giant that includes Ticketmaster, on Thursday became tools for Jeffrey L. Kessler, a lawyer representing the 34 states that have filed an antitrust case against the company.
“Who talks like this? What type of company uses this language?” Mr. Kessler asked the jury during closing arguments at Federal District Court in Manhattan. “The answer, I think you will find, is a monopolist who views itself to be above the law.”
The suit, brought by the Justice Department almost two years ago, accuses Live Nation of operating a wide-reaching monopoly in the live entertainment industry that has suffocated competition and driven up prices for millions of fans, charges that Live Nation disputes vigorously.
David R. Marriott, a lawyer for the concert company, contended that the statements Mr. Kessler read — found among the blizzard of documents produced as evidence during the six-week trial — were distractions from the real evidence in the case, which he said favored Live Nation.
“This has been a trial by snippet and by insinuation,” Mr. Marriott said, adding that Live Nation did “not condone those statements in any way, shape or form — they were wrong.” (The “robbing them blind” comment came from a private Slack exchange between two Ticketmaster employees who bragged about overcharging fans for amenities; the other statements were made by Live Nation executives about touring and ticket pricing.)
The trial has been closely watched in the music industry, where Live Nation is a colossus, as well as in policy circles, as a test of the Trump administration’s stance on antitrust enforcement. The case was rocked after only three days of testimony when it was revealed that the Justice Department had reached a settlement with Live Nation — though the deal was not immediately disclosed to the court, drawing the ire of Judge Arun Subramanian, who called the delay “mind-boggling.”
A majority of the states balked at the Justice Department’s settlement and decided to continue the case on their own.
The heart of the case before the jury involves accusations that Live Nation has pressured artists to use the company’s promotions arm to play at its amphitheaters, and has also forced venues — sometimes with threats — to sign exclusive deals with Ticketmaster or risk losing access to Live Nation’s popular tours.
If Live Nation is found liable of violating antitrust laws, Judge Subramanian will decide whether to break the company up, as the government requested, or determine another remedy. The states are also asking for monetary damages; an expert witness computed that Ticketmaster overcharged customers up to $1.70 per ticket, though Live Nation has strongly disputed the methodology.
After the lawyers finished their closing arguments, Judge Subramanian read the jury its instructions; deliberations will begin Friday morning.
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