Ticketmaster merger faces competition probe

A controversial mega-merger between the world’s largest concert promoter Live Nation and ticket-selling giant Ticketmaster faces a probe by UK competition watchdogs, it was revealed today.

The British Office of Fair Trading (OFT) has referred the proposed tie-up to the Competition Commission after finding the merger could lessen competition and deny live music-goers the prospect of lower prices.

Ticketmaster and Live Nation, which has a roster of stars including Madonna, Coldplay and U2, unveiled the planned deal in February in a move that has already sparked competition concerns in the US.

It is also said to have attracted the ire of major artists including Bruce Springsteen amid fears of a near-monopoly on global live music ticketing.

In the UK, the OFT has concerns that the merger could force the only other major ticket-selling firm, CTS Eventim, from the market.

Live Nation already uses Ticketmaster as its principal ticket agent, but the contract runs out in December and it had agreed to switch to European group CTS.

But the OFT fears CTS would pull out of the UK if Live Nation and Ticketmaster join forces.

Even if CTS remained in the market, the OFT believes the deal would still have an impact on competition.

Ali Nikpay, OFT senior director, said: “Live music is a fast-growing industry, currently worth about £1.9bn (€2.4bn) a year.

“We expected CTS’s entry, through its contract with Live Nation, to be an important new competitive dynamic in the UK ticketing market.

“The proposed merger risks undermining this by potentially prompting the exit of what would likely have been a third large player from the UK, or at least significantly stunting its effectiveness.

“It creates a realistic prospect that the merger will deny those attending live music events the benefits of more competition in the distribution of tickets, which could include lower overall prices.”

The Competition Commission is due to report back by November 24.

No-one from Ticketmaster or Live Nation was immediately available for comment.