Oregon Attorney General Lauds Legal Decision Against Live Nation as Company Seeks Portland Venue

Oregon Attorney General Dan Rayfield today lauded a New York judge’s decision to deny a motion by Live Nation Entertainment to dismiss parts of a lawsuit filed last year by Oregon, 39 other states, and the U.S. Department of Justice.

Rayfield’s victory lap is notable because Beverly Hills-based Live Nation is seeking to open a venue in Portland, the last big U.S. city where it doesn’t have a presence.

The venue is planned for an empty lot at the eastern end of the Hawthorne Bridge that’s owned by Prosper Portland, the city’s development agency. In September, Prosper’s board voted to sell the parcel to Beam Construction & Management LLC and Colas Development Group LLC, two local firms that plan to develop the $50-million venue for Live Nation.

U.S. District Court Judge Arun Subramanian earlier this month denied Live Nation’s motion to dismiss part of the states' suit that relies on “tying,” which is prohibited by the Sherman Antitrust Act. Tying occurs when a firm sells one product only on the condition that the buyer also purchases another one.

The states allege that Live Nation requires that artists who want to play its venues also use its concert-promotion services. Live Nation argued that artists often use rival concert promoters, who rent venues on their behalf.

Live Nation also argued that the states lack antitrust standing to sue for damages on their claims under the Sherman Act. The states are suing on behalf of ticket buyers, but those buyers are “too far removed” from any alleged anticompetitive conduct, Live Nation argued, according to the judge’s brief.

Judge Subramanian sided with the states on both matters.

Live Nation drew anti-trust scrutiny when it offered to buy Ticketmaster in 2009. In order to complete the deal, Live Nation had to guarantee to the U.S. Justice Department that it wouldn’t withhold Live Nation tours from independent venues that didn’t sell tickets through Ticketmaster.

“People are fed up with the outrageous fees they have to pay just to see their favorite artists put on a show,” Rayfield said in press release. “This ruling is a win for consumers and artists. Live Nation and Ticketmaster don’t want to be held accountable for the monopoly they have created. We are going to fight to make sure Oregonians aren’t faced with these inflated prices, and that artists have control over where they perform.”

The states' lawsuit argues that Live Nation’s conduct causes fans to have to pay additional fees that aren’t transparent. Fans also have limited options when buying tickets and have fewer concert choices, Rayfield said today. The suit also notes that artists have fewer opportunities to play concerts, and fewer choices for promoting their concerts and selling tickets.

Representatives for Prosper Portland, Beam and Live Nation didn’t immediately return emails seeking comment.