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CTS exclusive ban confirmed…as market cap tops €4bn

CTS Eventim must amend or terminate its exclusivity deals with promoters to free up at least 20% of ticket inventory, says the Bundeskartellamt competition watchdog

By IQ on 29 Jan 2018

Bundeskartellamt

image © Bundeskartellamt

Germany’s Federal Cartel Office has published details of its controversial ruling banning CTS Eventim’s exclusivity agreements with promoters and box offices, mandating that at least 20% of ticket inventory from the company’s partners be available to other ticket sellers.

The decision, which can be read (in German) on the Bundeskartellamt website, gives formerly Eventim-exclusive promoters the option of allocating at least 20% of their annual ticket inventory to other ticket agencies, providing the term of their agreement is more than two years (or indefinite).

CTS Eventim is therefore required to either adjust or terminate all existing agreements, although the German ticketing giant – Europe’s largest – says it still plans to appeal the ruling.

“The decision of the Federal Cartel Office ignores the fierce competition in the market for ticket services”

“The decision of the Federal Cartel Office ignores the fierce competition in the market for ticket services, which is constantly increasing as a result of frequent entries into the market by digital [ticketing companies] from Germany and abroad,” says a spokesperson.

While it remains to be seen whether the Bundeskartellamt decision, along with a previous edict prohibiting the company’s takeover of promoter Four Artists, will hurt CTS’s ticketing business, the attention from regulatory authorities has failed to dent its share price: Friday saw the company’s market cap top the €4 billion mark for the first time since its floatation in 2000.

According to financial newswire dpa-AFX, 80% of analysts recommend buying CTS stock, with the remaining 20% suggesting holding.

 


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