Judge Denies Motion to Dismiss Ozzy Osbourne’s Antitrust Class Action

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A California federal judge has denied a motion to dismiss an antitrust class action lawsuit filed by Ozzy Osbourne on behalf of a Class of performers over allegations that Anschutz Entertainment Group Inc. allows the O2 Arena in London to be booked by an artist only if the artist also agrees to play at the Staples Center in Los Angeles. Both venues are owned by AEG.

Osbourne alleges AEG required him to commit to playing at the Staples Center instead of other available venues in the area as a condition of booking a show at O2 Arena.

U.S. District Judge Dale S. Fischer disputed AEG’s argument that Osbourne lacked standing to sue because the contract at issue is actually with Live Nation, because Live Nation was the entity that required him to book a show at the Staples Center if he was to play at O2 Arena.

“As Ozzy points out, this take on the allegations doesn’t necessarily make AEG’s actions less anticompetitive,” Judge Fischer writes. “But it is arguably different from what is pleaded in the complaint.”

“However, the first amended complaint alleges that, to the degree that Live Nation sought to make agreements with AEG, it was doing so as Ozzy’s representative,” the judge continues. “In any event, it is clear that the complaint alleges that Ozzy personally suffers damage in a fairly direct and non-speculative way by not being able to play in his preferred venues and that the damage stems from the kind of conduct that antitrust law is intended to prevent.”

Ozzy has alleged that AEG uses its market power in one market to stifle competition in a different market by using a tying arrangement, the judge notes.

“That tie allegedly harms Ozzy by constricting his choices on where to play his concerts regardless of whether Ozzy’s or his concert promoter’s name is on the contract with the venue,” Judge Fischer writes.

The judge notes that Osbourne chose to use Live Nation for an economically valid reason, just as he has opted to perform in London and Los Angeles for a reason.

“That Ozzy might have another possible way out of the tie besides not playing London or Los Angeles doesn’t necessarily make AEG’s conduct non-coercive,” Judge Fischer writes.

Osbourne filed the AEG antitrust class action lawsuit in March, accusing the venue owner of using unfair business practices to book artists.

The initial O2 Arena agreement allegedly included a “Staples Center Commitment,” a contract term prohibiting Ozzy from playing at any venue within 25 miles of Los Angeles, unless the show is performed at the Staples Center.

According to the O2 Arena class action lawsuit, the agreement is unfair because the O2 Arena is the only large indoor arena in London. Therefore, major artists who want to perform in London are forced to sign the Staples Center Commitment, which significantly limits their options for performing in Los Angeles, which has many large indoor arenas.

Ozzy is represented by Daniel M. Wall, Timothy L. O’Mara and Andrew M. Gass of Latham & Watkins LLP.

The Ozzy Osbourne AEG Antitrust Class Action Lawsuit is Ozzy Osbourne v. Anschutz Entertainment Group Inc., et al., Case No. 2:18-cv-02310, in the U.S. District Court for the Central District of California.