‘The concert ticket industry is broken,' justice department says as Ticketmaster trial begins

Core Viewpoint - The trial against Ticketmaster and its parent company Live Nation centers on allegations of monopolistic practices in the concert industry, with potential outcomes including a breakup of the companies or compensation for ticket purchasers [2][3]. Group 1: Allegations and Market Power - Ticketmaster retains an average of $7.58 from each ticket sold at major concert venues, which is a significant portion of the ticket price [1]. - The U.S. Department of Justice (DoJ) and attorneys general from New York and 38 other states claim that Live Nation's dominance in live-event markets negatively impacts artists, venues, and fans, asserting that the concert ticket industry is fundamentally broken [3]. - An expert estimate indicates that fans in the states seeking damages have overpaid between $1.56 and $1.72 for tickets due to Ticketmaster's higher fees compared to competitors like AXS [3]. Group 2: Defense and Competition Claims - Live Nation's attorney argues that Ticketmaster only takes about 5% of the ticket price and contends that the company is not a monopolist, emphasizing the competitive nature of the marketplace [4]. - The trial will feature testimonies from notable figures, including singer Kid Rock and executives from rival ticketing companies, highlighting the competitive landscape [5]. Group 3: Legal Proceedings and Additional Allegations - The DoJ alleges that Ticketmaster has used threats and multi-year exclusive contracts to dominate ticketing services, which raises concerns about anti-competitive behavior [6]. - A separate case filed by the U.S. Federal Trade Commission against Ticketmaster accuses the company of allowing exploitative ticket resellers to violate its rules, further complicating the legal landscape [6].