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Live Nation and the Justice Department reached a settlement on Monday, bringing an end to a high-profile antitrust trial that could have resulted in the company's breakup. The agreement follows a week of testimony and a face-to-face negotiation between Live Nation CEO Michael Rapino and Omeed Assefi, the acting assistant attorney general. As a result of the deal, the parent company of Ticketmaster will remain intact, resolving one of the largest antitrust cases in decades.
In court Monday, U.S. District Judge Arun Subramanian said he received an email Sunday night notifying the court that an agreement had been reached between the Justice Department and Live Nation, but that he had not seen a term sheet until that morning.
On a background call with reporters Monday, a senior justice official said the deal will drive down prices by giving both artists and consumers more choice.
As part of the agreement, Ticketmaster will provide a standalone ticketing system that will allow third-party companies like SeatGeek and StubHub to offer primary tickets through the platform. The senior justice official described it as "open sourcing" their ticketing model.
The company will also divest up to 13 amphitheaters and reserve 50% of tickets for nonexclusive venues.
Ticketmaster is also prohibited from retaliating against a venue that selects another primary ticket distributor, among other requirements.
Although a group of states have joined the DOJ in signing the agreement, other states can continue to press their own claims. Early Monday, a group of 26 states, which includes Washington, D.C., requested a motion for a mistrial.
New York Attorney General Letitia James said, "My attorney general colleagues and I have a strong case against Live Nation, and we will continue our lawsuit to protect consumers and restore fair competition to the live entertainment industry."
"We will keep fighting this case without the federal government so that we can secure justice for all those harmed by Live Nation’s monopoly," James said in a statement following news of the settlement.
The agreement follows a yearslong legal battle in which the DOJ along with 40 states, which includes Washington, D.C., accused Live Nation of using its control over major venues and ticketing relationships to lock out rivals and maintain monopoly power.
Live Nation has consistently denied wrongdoing.
