Ticketmaster's monopoly verdict opens the door to real reform |
Ticketmaster’s monopoly verdict opens the door to real reform
In a win for the 33 states and the District of Columbia that pursued the case to trial, a jury recently decided that Live Nation-Ticketmaster is a monopoly in violation of federal and state antitrust laws.
Court remedies and financial penalties are expected to come from the judge overseeing the case, but the question is when, and what should the states that brought this case be doing to ensure that consumers see real relief sooner rather than later?
The evidence presented in court made clear why this monopolization ruling was warranted. Private internal messages showed Live Nation-Ticketmaster executives openly discussing their ability to “gouge” fans and joking about “robbing them blind” because consumers often have nowhere else to turn to purchase tickets.
The court testimony showed that Ticketmaster controls roughly 86 percent of primary ticketing at major venues, while its parent company, Live Nation, owns or controls 78 percent of large amphitheaters. This degree of control is vertical integration — one company dominating multiple layers of the supply chain — in its clearest form, which reduces meaningful competition and raises prices.
Given these marketplace realities, it is little wonder why Live Nation sells roughly 10 times as many tickets as its closest rival, and why the case’s jury ultimately concluded that the company was ready, willing and able to overcharge........