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Live Nation Entertainment and the U.S. Department of Justice reached a proposed settlement on Monday, ending the antitrust trial targeting the company’s alleged monopoly over parts of the entertainment industry just a week after it began.
News of the settlement came out in a Monday morning court hearing, where it was also disclosed that Live Nation is in talks with state attorneys general to secure a broader resolution of related state-level antitrust claims.
The deal caps ticketing service fees at 15 per cent, and will allow venues to sell some tickets through competitors like SeatGeek or StubHub rather than on Ticketmaster exclusively, the company said in a press release.
The proposed settlement will also allow artists performing at amphitheatres owned by the entertainment industry giant to use promotional services from companies other than Live Nation, and the company will divest from its 13 exclusive booking agreements with amphitheatres, according to Live Nation.
Live Nation also says it will create a $280 million US settlement fund to address damage claims made by various states, which joined the DOJ in bringing the initial lawsuit in 2024.
“By giving artists greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans, we are putting more power where it should be – with artists and fans,” said Michael Rapino, President and CEO of Live Nation Entertainment in the release.
The settlement is only proposed at this point, meaning it still needs to be approved by the judge.
The Department of Justice did not initially reply to CBC News’s requests for comment.
The agreement brings the high-profile trial — in which the DOJ initially sought a breakup of the company when it sued Live Nation — to an end.
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While several states are reportedly on side with the settlement, a number of others expressed their discontent.
An attorney for Washington moved for a mistrial on behalf of the states. The judge was considering that request on Monday morning, or potentially pausing the trial to allow the states to prepare to proceed on their own.
New York Attorney General Letitia James also pushed back on the settlement, saying it “fails to address the monopoly at the centre of this case, and would benefit Live Nation at the expense of consumers.”
She vowed to continue her lawsuit against Live Nation, alongside about two dozen other states, including Arizona, California and Illinois.
U.S. District Judge Arun Subramanian questioned why the parties had not informed the court sooner about the settlement, which was signed on Thursday. An attorney for the Justice Department said she was not aware of the settlement as the trial proceeded on Friday.
“It shows absolute disrespect for the court, for the jury, for this entire process, and it is entirely unacceptable,” Subramanian said.