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Campaigners urge CMA to investigate StubHub takeover

Industry group FanFair Alliance is among those calling for a review of Viagogo's acquisition of rival StubHub on competition grounds

By IQ on 29 Nov 2019

The CMA is based at the Cabot Building in Canary Wharf, London

The CMA is based at the Cabot Building in Canary Wharf, London


Anti-ticket touting campaign group FanFair Alliance has written to UK regulators to urge an investigation into the takeover of StubHub by Viagogo, warning that the US$4bn acquisition could “leave a single market-dominant platform” with no competition in the secondary ticketing sector.

In a letter to the Competition and Markets Authority (CMA), FanFair campaign manager Adam Webb writes that the deal “would concentrate market power in ‘for-profit’ secondary ticketing in the hands of a single operator (a combined Viagogo/StubHub would control closer to 100% of the UK market, far above the CMA’s 40% benchmark) and potentially result in anti-competitive behaviour with significant and damaging implications throughout the UK’s live music sector.”

One of the CMA’s criteria for if a company might have a dominant position in the market if is if it has more than a 40% market share in its given sector.

Following the shutdown of Ticketmaster’s Get Me In! and Seatwave sites this time last year, Viagogo and StubHub are the last of the ‘big four’ ticket resale sites operating in the UK.

“A merger of the two would potentially leave a single market-dominant platform”

Differentiating between B2C (business-to-consumer, describing tickets sold by professionalised touts and for-profit ticket resale businesses) and C2C (consumer-to-consumer ticket exchange, such as Ticketmaster Exchange, See Tickets’ Fan-to-Fan and CTS Eventim’s FanSALE) platforms, Webb notes that the combined Viagogo and StubHub would be the only remaining major B2C resale site, effectively eliminating all competition in that market.

“Under a single dominant B2C platform, we would be concerned that such practices would become increasingly prevalent in the UK,” Webb adds, “pushing the market away from consumer-friendly ticket resale and towards the kind of anti-consumer practices currently being investigated in North America.”

Other organisations urging the CMA to look at the merger include the Consumers’ Association (Which?), which said earlier this week that “the regulator should closely examine this deal and the impact it could have on competition in the sector to ensure consumers do not lose out”.

 


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