By Dave Michaels
When the Justice Department settled with Live Nation at the start of a long-awaited antitrust trial, it mounted a pressure campaign against a group of plaintiff states to demand that Republican attorneys general join the truce.
Then-Attorney General Pam Bondi warned some of the GOP state officials that the deal was personal to President Trump, according to people familiar with the matter.
But to many of the states, the deal looked like a slap on the wrist, not the catalyst needed to promote competition in concert ticketing. More than 30 states decided to litigate even after the feds dropped out -- and they won.
Following the April jury verdict that found the company engaged in illegal monopolization, the states on Thursday asked a judge to impose sweeping changes on Live Nation, including forcing it to sell off its Ticketmaster subsidiary and some of the amphitheaters where it packs fans for summertime tours.
Outside of the courtroom the case has announced a broader verdict: The power center of policing corporate power and consolidation is shifting to the states.
A bipartisan group of states recently challenged Nexstar's $6.2 billion bid for broadcasting rival Tegna, a deal Trump supported, and another coalition is considering whether to oppose Paramount's $81 billion attempt to acquire Warner Bros.
"The states are going to have a bigger role in antitrust going forward," said Tennessee Attorney General Jonathan Skrmetti, a Republican who was deeply involved in the Live Nation case because of the ramifications for the music industry in his state.
"Having seen that we can do it even under really adverse circumstances," Skrmetti said, "we are going to be a lot more assertive about our states' interests, whereas maybe in past decades we were substantially more deferential to Main Justice."
State attorneys general, most of whom are elected by voters, have taken the spotlight in recent administrations for challenging controversial Washington policies when the president is of the opposing party, on everything from immigration to climate change. Republicans sued the Obama and Biden administrations repeatedly, while Democrats have done the same to Trump.
Antitrust and consumer-protection matters, however, have remained an area where bipartisan cooperation is possible -- and frequent. Many of the Justice Department's biggest antitrust lawsuits, including ones against Apple and Google, feature red and blue states as co-plaintiffs.
The states have traditionally supported federal enforcers who steer antitrust investigations that are often lengthy, complicated and costly. But as the Trump administration has retreated from enforcement and embraced more mergers, the trust between the two sides has fractured, according to some of the attorneys general. That is especially true, they said, because of concerns that Trump-aligned lobbyists are affecting the outcome of merger investigations.
The Justice Department has said that it is common to consult with corporate stakeholders on a merger case and that all of its settlements "are based on the merits."
The department has argued the Live Nation settlement achieved most of what it could have gotten through litigation. Bondi said she didn't threaten her state counterparts to support it.
The settlement, which requires court approval, would limit Live Nation's exclusive ticketing contracts with venues and impose a 15% cap on fees added to the face value of tickets. Live Nation has asked a judge to overturn the jury's verdict. Even if the outcome survives, the case doesn't justify breaking up the company, Live Nation said.
Hewlett Packard Enterprise secured a settlement with the Justice Department after hiring several lawyers with close ties to Trump. One of them, Mike Davis, hadn't specialized in representing clients with mergers but has earned millions of dollars representing them during the Trump administration.
Bondi fired two high-ranking Justice antitrust officials who objected to the settlement, including one, Roger Alford, who publicly accused senior Justice Department political officials of corrupting the process.
"The big question was, is the Department of Justice going to be coin-operated where lobbyists can essentially get results because they've got the right levers to pull?" said Colorado Attorney General Phil Weiser, a Democrat who is running for governor. "Is that going to be the new normal?"
Colorado, California, New York and other Democratic-led states have asked a federal court to override the HPE settlement, citing a Watergate-era law intended to ensure the government's antitrust lawsuits are settled without political interference.
Weiser practiced antitrust law at the Justice Department early in his career and worked there again when Live Nation merged with Ticketmaster in 2010. Other attorneys general, including some Republicans, say they have looked to him for guidance on tough decisions, including on the Live Nation case.
"When I have a question about antitrust law, I talk to him," said Ohio Attorney General Dave Yost, a Republican.
Weiser's office, working with California and others, recently challenged a big merger the Justice Department permitted: the combination of local-broadcast giants Nexstar and Tegna. Together the companies control over 264 stations. Indiana, Kansas and Pennsylvania, all led by Republican attorneys general, joined the lawsuit in April.
Nexstar and Tegna closed the deal in March, before the states filed their lawsuit. But a judge recently stopped them from further combining operations while the lawsuit plays out.
The case exposes a risk the states face with policing mergers: No law prevents companies from rushing to merge before attorneys general can stop them. The Justice Department, on the other hand, benefits from a statute that requires parties to wait while it investigates.
Another hurdle for the states: They don't have hundreds of antitrust lawyers like the federal government does. California is the biggest force, but it has just 42 antitrust lawyers. The Justice Department and Federal Trade Commission are each budgeted to carry over 400 antitrust attorneys.
California is weighing whether to sue over Paramount's purchase of Warner Bros., California Attorney General Rob Bonta said in an interview. "What we've seen so far makes us lean toward challenging," he said.
"There is a lot of indication that costs will go up, jobs will get cut or wages will go down," he added. "And you'll see decreases in competition, choice and quality. That's what antitrust law is supposed to protect against."
Paramount says there would be no merit to a legal challenge. It has committed to making 30 movies a year and continuing to license its content to third-party platforms. "Any effort to delay or block the merger would harm the creative community and consumers, and instead benefit Netflix and other dominant leaders who fear competition from a combined Paramount-WBD," a Paramount spokeswoman said.
Bonta's office is seeking an additional $14 million in funding for antitrust enforcement, citing a decline in federal oversight. California may hire outside lawyers if it sues Paramount, Bonta said. That tactic worked in the Live Nation case, when the states hired Jeffrey Kessler, known for litigating major sports-antitrust cases, to take the place of the Justice Department's lead lawyers. States can recoup their attorneys' fees if they win a case.
A few state lawyers quietly reached out to Kessler in February, worried about the impact of Live Nation's months of intense lobbying. The Justice Department's top trial lawyers had told them the administration might fold, people familiar with the matter said.
"It was a contingency plan," Skrmetti, the Tennessee attorney general, said.
Write to Dave Michaels at dave.michaels@wsj.com
(END) Dow Jones Newswires
Nexstar and Tegna closed the deal in March, before the states sought a restraining order to stop it. "States Flex Muscle on Antitrust Enforcement as Trump Administration Pulls Back," at 9 p.m. ET on May 25, incorrectly said the companies closed the deal before the states filed a lawsuit against it.
(END) Dow Jones Newswires
May 26, 2026 08:53 ET (12:53 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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