The UK's Competition and Markets Authority (CMA) has advised ticket resellers StubHub and Viagogo to halt any integration of the two businesses until it has finished investigating the proposed merger.
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UK competition watchdog CMA has referred Viagogo’s acquisition of StubHub for an in-depth investigation, saying it could lead to a “substantial” weakening of competition
By IQ on 25 Jun 2020
The UK’s Competition and Markets Authority (CMA) has referred the merger of secondary ticketing giants Viagogo and StubHub for an in-depth investigation, warning that the deal could result in “a substantial lessening of competition”.
The watchdog began its investigation into Viagogo’s US$4 billion all-cash acquisition of StubHub in December, following pressure from anti-ticket touting groups.
Earlier this month, the CMA stated that the deal, which would see both companies brought back under the control of founder Eric Baker, “could lead to customers losing out through higher prices, less innovation and a lack of real choice.”
The organisation is now advising that the merger be investigated further, after giving Viagogo five days to respond to its initial concerns.
Adam Webb, campaign manager of anti-touting group FanFair Alliance “welcomes” the CMA’s decision.
“We remain committed to our belief that the combination of the two companies is a good move for customers worldwide”
“Over recent years, there have been major steps forward in the UK to eradicate the bad practices of sites like Viagogo and StubHub and those of the large-scale ticket touts who dominate their supply chain,” says Webb.
“Even in the midst of the Covid-19 crisis, the thought of such a business monopolising “for profit” secondary ticketing remains highly problematic.
“Viagogo’s predatory marketing practices and business model continue to endanger audiences, and its $4.05bn acquisition of StubHub raises acute competition concerns, particularly in the UK.”
A Viagogo spokesperson says that the company “will continue to work diligently with the CMA” during the second phase of their review.
“We remain committed to our belief that the combination of the two companies is a good move for customers worldwide.”
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