New Zealand’s Court of Appeal overrules a High Court decision and allows the Commerce Commission to place temporary restrictions against Viagogo
Sign up for IQ Index
The latest industry news to your inbox.
A €3.7m fine against Viagogo for violating the 2017 budget law, which bans profiting from ticket resale, has been upheld by an Italian court
By IQ on 26 Apr 2021
An Italian court has rejected an appeal by Viagogo against a €3.7 million fine for hosting listings for tickets sold in contravention of Italian law.
The judgment, handed down by the regional administrative court (TAR) of Lazio (Latium) on 2 April, upholds a 2020 ruling in favour of the Italian Communications Authority (AGCOM), which brought legal action against the secondary ticketing site for listing tickets to 37 events at above face value between March and July 2019.
Ticket touting is effectively illegal in Italy under the country’s 2017 budget law, which states that tickets to entertainment events may only be sold by authorised retailers. Consumers are permitted to sell unwanted tickets only for a price equal to, or less than, their original face value.
The judges rejected Viagogo’s argument that it was acting merely as a “passive hosting provider” connecting resellers with potential buyers, which would exempt the resale platform from liability under Italian law. Instead, Viagogo was found to provide a range of services and promote and advertise tickets in a way that could not be considered to be carried out without any awareness or control on its part.
“The service provided by Viagogo […] does not have the characteristics of passive hosting,” the court concluded, “given that it clearly does not consist merely of the ‘storage of information’ but rather optimisation, advertising and promotion of the tickets on sale.”
“Uncapped secondary marketplaces … have long been shielding under the liability exemption offered by EU law”
“Nor has the appellant in any way substantiated the claim that such complex activities would be carried out by the platform in a completely automatic manner and without any awareness and/or possibility of control on its part,” adds the ruling.
Additionally, even if Viagogo had qualified as a ‘passive hosting provider’, it would still not have benefited from the liability exemption afforded by the law as it did not act quickly to remove or disable access to the listings once notified by authorities, according to the court.
The ruling follows similar decisions in both Italy (Mediaset v. Yahoo) and the European Court (L’Oréal v. eBay, Google v. Louis Vuitton) which have held websites responsible for the content ‘passively’ hosted on their platforms.
“Uncapped secondary marketplaces such as Viagogo have long been shielding under the liability exemption offered by EU law by claiming to have little to no knowledge of the activity taking place on their sites,” comments Sam Shemtob, director of the Face-Value European Alliance for Ticketing (FEAT).
“It is time that they’re held responsible for the illegal activity they promote and profit from, both in Italy and across Europe.”
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.