NEW YORK - Live Nation reached a tentative settlement with the US Justice Department on Monday in the federal antitrust case brought against the entertainment giant.
The settlement, which requires the approval of District Judge Arun Subramanian, comes just days after the antitrust trial began in New York.
The case was initiated under then-President Joe Biden, with prosecutors accusing Live Nation -- which owns Ticketmaster -- of being a monopolist that controlled virtually all live entertainment in the United States.
The settlement requires Live Nation to open up the ticketing platform to competitors and to allow other promoters to stage events at certain Live Nation venues, Justice Department officials said.
Live Nation will divest up to 13 amphitheatres and pay $280 million in damages to the nearly 40 states that were parties to the antitrust lawsuit against the California-based company.
The increased competition should result in ticket prices coming down, the officials said.
Live Nation shares surged more than six percent on the New York Stock Exchange on Monday.
New York and a number of other states declined to join the settlement and said their litigation against Live Nation would continue.
"For years, Live Nation has made enormous profits by exploiting its illegal monopoly and raising costs for shows," New York Attorney General Letitia James said.
"The settlement recently announced with the US Department of Justice fails to address the monopoly at the center of this case, and would benefit Live Nation at the expense of consumers," James said in a statement.
"We will keep fighting this case without the federal government so that we can secure justice for all those harmed by Live Nation's monopoly."
A spokesperson for the New York attorney general said prosecutors would file a motion with the court seeking a mistrial and file a new case against Live Nation brought solely by the states.
The Justice Department officials said talks with a number of the states were ongoing and they were hopeful some of them will eventually sign off on the settlement.
Live Nation welcomed the agreement with president and CEO Michael Rapino, calling it a "major step in improving the concert experience for artists and fans throughout the United States."
Rapino said it will give artists "greater flexibility in choosing their promotional partners and ticketing strategy while also keeping the cost of a concert more affordable for fans."