States and Live Nation are Battling Over Appeals-Court Decision That Could Affect Antitrust Verdict

Legal tumult continues in the Live Nation/Ticketmaster antitrust case. The states have cited a ruling by the US Court of Appeals for the Second Circuit to support the claim that Live Nation unlawfully required artists to use its promotion service when playing its venues.

Background:

• The case in the Second Circuit was Cumulus Media New Holdings v. The Nielsen Co. (US).

• In this case, the similarity was found in Nielsen requiring the purchase of its national market data to purchase its local market data.

• This development comes as Judge Arun Subramanian prepares to hear arguments on Friday (July 31) regarding Live Nation’s motions to throw out the antitrust verdict or get a new trial.

The arguments:

• In the Live Nation case, the states claim the Cumulus decision proves that even if the attached sales/services are not explicitly stated, it still amounts to coercion.

• Live Nation argues the Cumulus decision doesn’t prove anyone was coerced into purchasing an unwanted product, essentially suggesting that any artist who wanted to play a Live Nation venue also wanted its artist promotion services.

• Live Nation also argues that such practices should indicate harm to competition due to the forced use of multiple services, but denies any such evidence exists.

What they said:

• The states via their letter to the court: “A policy conditioning the purchase of one product on the purchase of another need not be express and that ongoing enforcement of the policy is sufficient to constitute coercion.”

• Live Nation in its reply: “There is no evidence of an ‘unwanted’ product here, nor even that any artist unwillingly purchased promotion services from Live Nation.”