Live Nation Loses Appeal in Ticket Price Lawsuit

Case Overview: A U.S. appeals court has denied Live Nation's attempt to block a class action lawsuit that accuses the company of inflating ticket prices through monopolistic practices. 

Consumers Affected: Concertgoers who purchased tickets through Live Nation and Ticketmaster.

Court: 9th U.S. Circuit Court of Appeals

Consumers have had a win in the Live Nation ticket saga, with Live Nation Entertainment and its subsidiary Ticketmaster failing to convince a U.S. appeals court to throw out a class action lawsuit that accuses them of inflating ticket prices through monopolistic practices. 

The 9th U.S. Circuit Court of Appeals upheld a 2023 decision that rejected Live Nation’s attempt to enforce arbitration clauses and avoid federal court. The court ruled that the arbitration provisions, which Live Nation sought to impose on ticket buyers, were overly beneficial to the company and unfair to consumers, Reuters reports.

Consumers Allege Live Nation and Ticketmaster Inflated Ticket Prices Through Monopolistic Practices

In the class action lawsuit, similar to another filed against Live Nation, consumers argue that since Live Nation’s acquisition of Ticketmaster in 2010, the company has stifled competition, causing ticket prices to rise. 

Concert-goers claim that Live Nation’s control over primary ticket sales through Ticketmaster and influence over the secondary ticket market allows the company to charge high fees and restrict consumer choice.

The lawsuit highlights how Live Nation’s role as a promoter, venue operator, and ticketing service creates an “anti-competitive and unlawful” setup, effectively boxing out other ticketing agents, and, according to the lawsuit, this monopoly harms concertgoers by limiting competition and driving up ticket costs. 

The consumer class action runs parallel to a separate antitrust case filed by the U.S. Department of Justice, which also alleges that Live Nation’s business practices violate antitrust law and unfairly restrict competition in the live event ticketing market.

Appeals Court Rejects Live Nation's Arbitration Clauses as Unfair to Consumers

In its ruling, the panel criticized Live Nation’s arbitration clauses, describing the terms as “unconscionable and unenforceable.” Specifically, the panel found that New Era ADR, the arbitration provider Live Nation selected, offered rules that were too complex and contradictory, making it difficult for plaintiffs to fairly resolve their claims.

New Era ADR, while not a defendant in the case, expressed disappointment with the decision. CEO Rich Lee told Reuters that New Era’s arbitration rules are “objective” and designed to be “easy to understand,” emphasizing that they benefit both parties when claims are valid. Live Nation also defended New Era’s system, describing its procedures as fair and comparable to other platforms’ arbitration rules. 

Meanwhile, the attorney for the plaintiffs, Warren Postman, welcomed the court’s decision, calling it a positive outcome for consumers. Postman criticized what he sees as a corporate trend of imposing restrictive arbitration agreements to gain an advantage over consumers.

Other Companies Face Consumer Lawsuits Over Alleged Anti-Competitive Practices

Across various industries, a number of companies are facing accusations of using anti-competitive practices to inflate prices or limit market choice. Visa faces a class action lawsuit alleging that the credit card company engaged in practices that inflated processing fees and hurt small businesses by restricting competition. 

In another case, several major hotel chains are being sued for allegedly using a shared AI-powered pricing algorithm to increase rates for extended-stay guests, resulting in inflated room prices.

Valve Corporation, the company behind the Steam gaming platform, is defending itself against a class action lawsuit that claims its practices artificially drive up game prices on the platform. Plaintiffs argue that Valve’s market power allows it to impose conditions on game developers that limit price competition.

Case Details

• Lawsuit: Heckman, et al. v. Live Nation Entertainment Inc., et al
• Case Number: 23-55770
• Court: 9th U.S. Circuit Court of Appeals

Plaintiffs' Attorneys

• Warren Postman and Albert Pak (Keller Postman)
• Kevin Teruya and Adam Wolfson (Quinn Emanuel Urquhart & Sullivan)

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