Oct 28 (Reuters) - Live Nation Entertainment ( LYV ) and its

subsidiary Ticketmaster have failed to persuade a U.S. appeals

court to block a proposed class action accusing them of charging

artificially high ticket prices.

The San Francisco-based 9th U.S. Circuit Court of Appeals on

Monday upheld a lower judge's 2023 ruling that said Live Nation

could not enforce contract provisions that required ticket

buyers to arbitrate their claims rather than sue in federal

court.

The appeals panel said the arbitration rules were unfair to

consumers and "overtly" beneficial to defendants. The rules,

which placed the ticketholders' claims in the hands of a new

arbitration body called New Era ADR, were "unconscionable and

unenforceable," the court said.

Beverly Hills-based Live Nation and Chicago-based New Era

did not immediately respond to requests for comment.

The closely watched appeal tested the scope of companies'

power to compel buyers to arbitrate their disputes, including

through "mass" arbitrations involving hundreds or thousands of

claims.

Warren Postman, a lawyer for the consumers, welcomed the

decision in a statement. He criticized what he called "corporate

attempts to impose novel group procedures to gain tactical

advantages over consumers and employees."

The appeals panel found a key 2005 California Supreme Court

opinion protecting class actions applied to the antitrust case

against Live Nation and was not preempted by the Federal

Arbitration Act.

New Era's arbitration rules were an "inadequate vehicle" for

the plaintiffs to resolve their claims, the three-judge panel

said, with rules "so dense, convoluted and internally

contradictory to be borderline unintelligible."

Live Nation has defended New Era, calling its rules

"sensible, fair, and similar" to those at other platforms.

In May, the U.S. Justice Department and a group of states

asked a U.S. judge in Manhattan to break up Live Nation for

allegedly violating antitrust law, claiming the company

"suffocates its competition" in its control over ticket sales

and pricing.

Live Nation in a statement then said there was more

competition than ever before in the live events market.

The case is Skot Heckman et al v. Live Nation et al, 9th

U.S. Circuit Court of Appeals, No. 23-55770.

For plaintiffs: Warren Postman and Albert Pak of Keller

Postman; and Kevin Teruya and Adam Wolfson of Quinn Emanuel

Urquhart & Sullivan

For defendants: Roman Martinez and Tim O'Mara of Latham &

Watkins

Read more:

In Live Nation case, appeals court mulls mass arbitration

breakthrough

Live Nation 'suffocates its competition,' US says in

monopoly lawsuit

Live Nation in consumer ticket-price lawsuit loses bid for

'mass' arbitration