Ticket resale web site Viagogo’s merger with rival StubHub may result in increased costs for live performance followers and different prospects, the market regulator has warned.
The Competitors and Markets Authority (CMA) stated it discovered issues over the “lack of competitors” if the proposed deal was to go forward, owing to the recognition and dominance of the 2 web sites.
Viagogo and StubHub are the UK’s two largest secondary ticketing corporations and maintain greater than 80% of the nation’s market share, the CMA stated.
After trying into proof from third events and the businesses’ inner paperwork, the CMA discovered that Viagogo and StubHub had been “shut rivals in an already very concentrated market with restricted options”
Its section one investigation additionally discovered that costs for tickets bought on the web sites may rise because of the merger, after consulting with client teams, prospects and rivals.
Andrea Gomes da Silva, CMA’s govt director for markets and mergers, stated: “Viagogo is already the biggest secondary ticketing firm within the UK by some appreciable margin and has bought a longtime rival, with no different vital rivals available in the market.
“We’re due to this fact involved that this transaction may result in prospects shedding out by increased costs, much less innovation and an absence of actual alternative.”
The CMA additionally stated it had to date not seen proof that Viagogo or StubHub can be extra adversely affected by the pause on dwell occasions because of the coronavirus disaster in comparison with different corporations.
Viagogo now has 5 working days to resolve the problem with the regulator to be able to keep away from an in-depth section two investigation into the merger.
London-based Viagogo introduced the £3.2bn deal in November to takeover StubHub, a subsidiary of eBay.
Viagogo stated it’s going to proceed to work with the CMA throughout its assessment, including that it believed the mix is a “good transfer for patrons worldwide”.
StubHub has beforehand been a topic of an investigation by the regulator and has been accused of utilizing “deceptive messages” on its ticketing platform.
The American firm was pressured into compliance as soon as the CMA threatened it with court docket motion.