VANCOUVER — A U.S. jury ruling against Live Nation and Ticketmaster could eventually result in lower ticket prices for Canadian concertgoers, who may also qualify for compensation, according to a former federal U.S. prosecutor.
A New York jury on Wednesday found the massive concert promoter and its subsidiary operated an illegal monopoly which overcharged customers and stifled competition.
Mitchell Epner, a former federal prosecutor in New York, said the verdict marks a major turning point for music fans on both sides of the border.
“This is a good day for concertgoers, and it was a very, very bad day for Live Nation - Ticketmaster,” Epner told CTV News Thursday.
The case was brought by 30 U.S. states, accusing Live Nation of using its market dominance to inflate fees and block competition. Jurors concluded Ticketmaster overcharged buyers by US$1.72 per ticket, an amount that Epner says could be tripled under U.S. antitrust law.
“Whatever amount of money the judge ultimately finds concertgoers were overcharged, that will be tripled in the amount that Live Nation is required to pay,” Epner said.
That means customers, including Canadians who purchased tickets through Ticketmaster for shows in Canada, could potentially qualify for compensation if damages are awarded.
“The location of the concert does not impact the ability to recover,” Epner confirmed.
The ruling could also reshape the concert business by forcing Live Nation to separate from Ticketmaster, a move Epner says would open the door to more competition in ticket sales and event promotion, “really changing the way in which people attend live events, sports and music around North America.”
And, Epner says, the ruling could lead to lower ticket prices.
“What it almost certainly will lead to is more competition, more opportunities for acts to go to different venues and not end up where Ticketmaster takes a big percentage of the money that’s coming out of fans’ pockets.”
He noted the service charges and convenience fees that have long infuriated concert fans often make up a significant share of the ticket price.
“A person will spend $100 to get into the venue, but $65 of it will be ticket price and the other $35 will be various Ticketmaster fees and convenience charges,” Epner said.
The final outcome, and what could change for Canadian concertgoers, will depend on the upcoming decision of a judge.
“The jury was asked to find Live Nation liable, and they did,” Epner said. “But that’s really just the beginning of the remedies phase here.”
