The head of Live Nation, the concert giant that includes Ticketmaster, defended his company in a Manhattan courtroom on Thursday against accusations that it has used anticompetitive tactics to maintain a dominant position in the live entertainment business.
Michael Rapino, Live Nation’s longtime chief executive and one of the most powerful figures in the music industry, took the stand at Federal District Court in an antitrust trial initially brought against his company by the Justice Department.
But the federal government withdrew from the trial earlier this month after reaching a surprise settlement with Live Nation. Now a coalition of more than 30 states, dissatisfied with the terms of that agreement, are continuing the case on their own.
Under aggressive questioning from Jeffrey L. Kessler, a veteran antitrust lawyer representing the states, Mr. Rapino was repeatedly asked about how Live Nation protects its ticketing and concert promotion business against competitors, including whether it viewed its use of exclusive, long-term contracts as a “moat.”
Mr. Rapino, who appeared in a crisp dark suit, with black stubble on his face, rejected that analogy. He portrayed his company as having worked hard to create a successful model that would make money for itself and for artists.
“The idea of business in general,” Mr. Rapino testified, “is that you want to build a better mousetrap than the other guy.” He portrayed Live Nation, which merged with Ticketmaster in 2010, as being “ahead of the curve” in establishing a vertically integrated business structure that would include venues, concert promotion and ticketing, which he said has since been emulated by other companies it now competes with.
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