For the international contemporary live music industry
LiveUK

Viagogo-StubHub merger blocked in UK

World News
February 4, 2021

UNITED KINGDOM

CONSUMER WATCHDOG the Competition and Markets Authority (CMA) has ruled that controversial ticket resale website Viagogo must sell its StubHub business outside North America, concluding a 14-month enquiry.

The investigation took evidence from live music promoters and venue operators, fans, competitors and artiste managers.

The CMA decided the merger, which has been on hold, would lead to higher fees and poorer service for its UK customers.

Viagogo bought its main rival from eBay for $4.05 billion in December 2019.

In an earlier action that year, the CMA started court proceedings against Viagogo for failure to comply with consumer protection laws, but dropped them when the company complied at the last minute.

The new ruling represents a partial victory for campaigners who worried about the potential the merged company would have had to exploit its power over the secondary ticketing market.

Longstanding campaigner against ticket touting Sharon Hodgson MP, who is co-chair of the All-Party Parliamentary Group on Ticket Abuse, says “This will give no relief to the tens of thousands of fans who have already been ripped-off by these websites, or those who may fall victim to their parasitical business models in the future.

“We now need to see the secondary ticket market properly regulated so consumers can once again trust the platforms they use.”

Adam Webb of campaigning group FanFair Alliance, which represents managers of artistes including Mumford & Sons, Arctic Monkeys and Nick Cave, feels more regulation of secondary platforms is required.

“The most pertinent question will be the identity of potential [StubHub] buyers,” he says. “Aside from the acquisition costs, anyone wishing to operate a successful uncapped ticket resale business in the UK would require significant relationships with large-scale ticket touts to supply inventory, and deep enough pockets to outspend Viagogo on Google search advertising.”

Viagogo has yet to comment.

Other Stories

Glastonbury cancelled for second year

January 27, 2021
UNITED KINGDON TICKET-BUYERS who placed a £50 deposit on a ticket to Glastonbury Festival (cap. 147,500) in October 2019 have been offered the chance to…
Read more

Live Nation focused on future as revenue collapses

December 22, 2020
Despite a dramatic, but expected third quarter (Q3) decline in revenue, Live Nation Entertainment (LNE) CEO Michael Rapino says he expects the company to bounce…
Read more