Live Nation Chief Executive Michael Rapino spent hours on the witness stand in federal court in Manhattan, rejecting claims that the entertainment giant unlawfully dominates the U.S. live concert business. The case was initially filed by the Department of Justice alongside dozens of state attorneys general, though the federal government reached an unexpected settlement with the company in early March after a meeting between Rapino and Omeed Assefi, the acting head of the Justice Department’s Antitrust Division, according to NBC.
That agreement drew sharp criticism from many of the state attorneys general involved in the case. Per NBC, a majority of those states denounced the settlement and said they would continue pressing their antitrust claims against Live Nation and its Ticketmaster unit.
During the proceedings, Jeffrey Kessler, a lawyer representing the states, challenged Rapino on several aspects of Live Nation’s business, including ticket pricing, exclusive long-term venue agreements and allegations that the company helped create an anticompetitive market, according to NBC. Rapino pushed back, portraying the concert industry before Live Nation’s rise as disorganized and uneven.
He testified that the sector had once been “fragmented,” calling it the “wild, wild west.” Rapino argued that Live Nation helped bring greater professionalism to the business and said rivals later adopted similar strategies. He also defended the company’s approach to combining ticketing, venue ownership and concert promotion, saying, “You want to build a better mousetrap than the other guys. We were ahead of the curve in owning ticketing, owning venues, and concert promotion.”
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Related: States Press Ahead With Live Nation Antitrust Trial After Federal Settlement
Kessler also questioned Rapino about artist complaints over ticketing restrictions. One example involved Adele, who was not allowed to sell tickets directly to fans through another company even though she was willing to absorb the fees herself, according to NBC. Rapino responded, “We would never say no to Adele. We said no to the ticketing company trying to get free tickets.”
The questioning also turned to internal company communications. Kessler pointed to a 2016 email in which Rapino wrote about ticketing costs tied to an Alabama Shakes concert: “Our fees are too high. We can’t defend them.” Rapino said he did not remember the email or the context, noting that it was sent roughly a decade ago, per NBC.
Another line of questioning focused on internal messages about parking charges at concerts. Kessler asked Rapino about an employee who allegedly bragged about “robbing” concertgoers “blind” by raising parking fees. Rapino said he had only recently become aware of the messages and called them “disgusting,” adding, “it’s not how we operate,” according to NBC.
The court also heard about a 2022 Slack message from Ben Baker, who was then a regional ticketing director at Live Nation. The message referred to a data set showing annual gross revenue from “premier parking” rising from $470,000 in 2018 to $666,000 in 2021, according to a Justice Department filing made public in the case and cited by NBC.
The trial remains a major test of how far state officials are willing to go in challenging Live Nation’s market power after the federal government stepped back. Per NBC, the states are continuing to argue that the company’s practices in ticketing, promotion and venue relationships have harmed competition and concertgoers alike.
Source: NBC