The US Justice Department has reportedly reached a settlement with Ticketmaster and its parent company, Live Nation Entertainment Inc (NYSE:LYV), resolving a high-profile antitrust lawsuit that alleged the companies held an illegal monopoly over live events in the United States.
Live Nation shares jumped more than 6% in early trade on the news.
Under the reported settlement, Live Nation will retain ownership of Ticketmaster but is expected to pay approximately $200 million in damages or restitution to around 40 participating states. Ticketmaster will also open parts of its ticketing platform to rival sellers, allowing third-party vendors to list tickets directly on its system.
The deal reportedly includes caps on the length of Live Nation and Ticketmaster’s exclusive venue contracts, which would allow venues to reserve a portion of inventory for competing platforms.
Additionally, Live Nation is expected to divest more than 10 amphitheaters and face limits on service fees at company-controlled venues.
The 2024 lawsuit, initiated under the Biden administration, accused Live Nation of employing tactics including threats and retaliation to suppress competition, giving the company control over concert promotion and ticketing and, in turn, driving up prices for consumers. Live Nation has consistently maintained that artists and their teams set ticket prices and sales conditions.
The settlement also comes ahead of a scheduled trial in New York that would have addressed whether Live Nation should be forced to spin off Ticketmaster.