Antitrust Attack on Concert Promotion Agreement Survives Motion to Dismiss

A competing arena has attacked an agreement between concert promoter Live Nation and the Grand Rapids/Kent County Convention Authority that entitles 1) Live Nation to 1/3 of the revenue from non-Live Nation events at Convention Authority venues, and 2) the Convention Authority 1/3 of Live Nation’s revenue at Live Nation events scheduled at competing venues.  The owner of the competing DeltaPlex Arena alleges that the agreement will increase price and reduce the number of big-time concerts in the area.  The defendants’ argued that they were protected by state action immunity because of their affiliation with local government.  The court held that the complaint sufficiently alleged an antitrust violation and that the applicability of state action immunity was not clear.

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