Watchdog calls for Viagogo-Stubhub breakup over competition concerns
The UK’s competition watchdog has called for ticket reseller Viagogo to sell “all or part of” Stubhub, after a large-scale review into the merger found the two were close competitors in “a very concentrated market”.
The Competition and Markets Authority (CMA) said its investigation into the $4bn (£3bn) deal, completed in February, found it was likely to result in a “substantial lessening of competition in the online secondary ticketing market”.
The pair collectively make up more than 90 per cent of the ticket resale market, and are the two biggest players in the industry in the UK.
The CMA said it was concerned that the merger “could lead to increases in fees for customers… who resell or buy secondary tickets to live events”, and could result in “a lower quality of service and reduced innovation in the sector”.
The watchdog said it examined the crossover between resellers on both sites, and the prices and fees charged. It also looked at the impact of the pandemic on the ticket resale industry, with live events cancelled due to social distancing rules.
However, the CMA said it had concluded that the two competitors would remain important competitors for the foreseeable future despite the pandemic.
“The evidence we’ve seen so far consistently points in the same direction — that Viagogo and Stubhub have a market share of more than 90 per cent combined and compete closely with each other,” said Stuart McIntosh, chair of the CMA inquiry group.
“We are therefore concerned that their merger could lead to secondary ticketing customers facing higher fees and lower quality services. We’re now inviting comments on our provisional findings and possible remedies.”
A spokesman for Viagogo said: “Our intention remains to provide event goers in the UK with the best possible service, and whilst we disagree with the provisional conclusion that the deal would reduce competition, we look forward to working with the CMA to deliver a comprehensive solution which addresses their concerns.”