The US is fighting to break up Ticketmaster — could Ireland do something similar?

Case by US Department of Justice over anti-competitive conduct will be closely watched by the EU, which could initiate its own investigations
The US is fighting to break up Ticketmaster — could Ireland do something similar?

Just this week, frustration towards Ticketmaster reached a boiling point when its controversial pricing system led to surge in the cost of Oasis tickets, which has once again prompted calls for a consumer watchdog probe.

This summer, Live Nation, the world’s largest event promoter and its Ticketmaster unit were hit with a consumer antitrust lawsuit after the US Government’s Department of Justice sued to break up the two major companies.

Supported by 30 state attorney generals, the case accused Live Nation of exercising monopoly control over the live events industry, threatening venues that work with competitors and blocking rivals from the market.

In the lawsuit, the Justice Department asked the court to “order the divestiture of, at minimum, Ticketmaster, along with any additional relief as needed to cure any anticompetitive harm”. Responding to the case, Live Nation, which acquired Ticketmaster in 2010, called the accusations “baseless,” adding there was “more competition than ever” in the live events industry.

While the US Government did sign off on the merger back in 2010, the Department of Justice has argued Live Nation had since shown “more expansive forms" of anticompetitive conduct.

“Live Nation suffocates its competition," said US Attorney General Merrick Garland. 

It relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators.

For years, concert fans and politicians worldwide have called for an investigation into Live Nation's purchase of Ticketmaster, with 2023 marking a turning point after the company caused chaos by botching sales to Taylor Swift's first concert tour in years.

As fans raced to purchase tickets at the same time, many were sent into hours-long online queues, charging prices customers claimed were too high and drawing charges of poor service.

Just this week, frustration towards Ticketmaster reached a boiling point when its controversial pricing system led to surge in the cost of Oasis tickets, which has once again prompted calls for a consumer watchdog probe.

Many fans who waited in long online queues for tickets to the band’s two gigs at Dublin’s Croke Park were left shocked when they found that prices for standing tickets had rocketed by the time they finally got the opportunity to make a purchase, with some quoted at €415.50 each.

Following the chaos, Irish MEP Regina Doherty said she had written to the European Commissioner for Competition calling for an  investigation into ticket pricing. 

The Fine Gael representative for the Dublin constituency also urged Ireland’s Competition and Consumer Protection Commission to examine the process.

“When ticket prices were advertised earlier this week, standing tickets in Croke Park were €86.50 plus booking fees, but when many people eventually got through the online queue this morning, they were faced with the exact same ticket at a price of €415.50,” she said.

“That’s not transparent advertising and certainly not fair to consumers."

In addition, Tánaiste Micheál Martin called on those involved in ticket sales to reflect on what has transpired as "there are a lot of disappointed people out there from the perspective of what they would see as price gouging".

How large is Ticketmaster’s presence in Ireland?

Scepticism over Ticketmaster’s and Live Nation’s practices and reach across the entertainment industry has spread far beyond just the US. Live Nation’s Irish portfolio comprises the 3Arena, the 3Olympia, the Bord Gáis Energy Theatre, the Gaiety Theatre, event promoter MCD and several other businesses within the industry. It is also behind festivals such as Electric Picnic, Longitude and Trinity Summer Series.

In addition, the price of concert tickets in Ireland has risen dramatically in recent years, with most recent inflation figures from the Central Statistics Office (CSO) showing a 9% annual rise in cultural admittance costs which includes access to theatres, museums, libraries and most significantly, concerts.

In 2021, the Competition and Consumer Protection Commission (CCPC) published a report on its investigation into suspected anti-competitive practices in the provision of tickets and ticketing services, examining whether Ticketmaster may have “abused a dominant position by entering into long-term, exclusive agreements with live event organisers and venues”. 

The report found between January 2012 and December 2018, Ticketmaster Ireland’s market share exceeded 90%, whether measured by revenue or by gross ticket value, with the CCPC adding the company’s annual market share was more than 10 times higher than those of its two nearest competitors.

The watchdog’s findings outlined that by using long-term contracts which did not allow companies to work with any other supplier, Ticketmaster was “abusing their dominant position,” marking a potential breach of Irish competition law.

As a result, Ticketmaster entered into an agreement with the CCPC, committing to several actions involving specific changes to its current and future contracts with live event organisers and venues operating in Ireland.

These changes included the removal of exclusivity clauses from agreements with venues and limiting all of Ticketmaster’s agreements with live event organisers and venues in Ireland to a maximum duration of five years.

EU response 

While the European Union has never investigated Ticketmaster or Live Nation before, its latest controversies along with the actions of the US will likely act as a catalyst for regulatory bodies worldwide, prompting them to dig deeper into the company’s tight grasp of the global entertainment industry.

If evidence emerges from the lawsuit that Live Nation, Ticketmaster or any of its many subsidiaries engaged in anticompetitive practices within the EU, it is possible the European Commission could initiate its own investigations.

While the direct impact of the US lawsuit on the EU remains to be seen, it goes without saying Europe will watch closely at what happens, and if it sees fit, take investigations and measures into its own hands.

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