Introduction:
Ticketmaster and StubHub are two of the world’s largest ticket resellers. They have long been the go-to platforms for purchasing tickets to concerts, sports events, and other live entertainment. However, there has been growing concern about their practices, particularly with regards to their fees. Recently, the UK Competition and Markets Authority (CMA) has launched an investigation into both companies, which could result in significant changes to the way they do business.
The Ticket Reselling Industry
The ticket reselling industry has become increasingly controversial in recent years. Many fans struggle to purchase tickets directly from venues, so they turn to resale sites like Ticketmaster and StubHub. While these sites can provide an easy way to purchase tickets, they often charge high fees that can significantly increase the cost of attending an event. Additionally, the rapid buying and reselling of tickets can lead to shortages and inflated prices, squeezing out genuine fans.
The UK Competition and Markets Authority’s Investigation
In June 2019, the CMA announced that it was launching an investigation into the practices of both Ticketmaster and StubHub. The investigation will focus on a number of areas, including the transparency of fees and charges, the effectiveness of anti-bot measures, and the use of pressure selling tactics. The CMA has also requested information from other players in the ticketing industry to gain a broader perspective on the sector.
Responses from Ticketmaster and StubHub
Both Ticketmaster and StubHub have expressed their willingness to cooperate with the CMA’s investigation. Ticketmaster has stated that it believes in “a fair and open ticketing market” and that it is “committed to the highest standards of transparency and consumer protection”. StubHub has similarly stated that it is “open to working collaboratively” with the CMA to improve the industry.
Potential Outcomes
There are a number of potential outcomes from the investigation. The CMA could recommend changes to the way that Ticketmaster and StubHub operate, or it could take legal action against them. The investigation could also lead to wider changes in the ticketing industry, such as greater regulation or the introduction of new market entrants. It is worth noting that the CMA has previously taken action against the ticketing industry, and has fined companies for failing to comply with consumer protection legislation.
The Importance of a Fair Ticketing Market
The CMA’s investigation highlights the importance of a fair and transparent ticketing market. Fans should not be subjected to excessive fees or pressured into buying tickets through unethical practices. A healthy ticketing industry is one that provides access to events for genuine fans, supports artists and venues, and operates with integrity. The CMA’s investigation should be welcomed by all those who care about the future of the live entertainment industry.
Conclusion:
Ticketmaster and StubHub are facing new scrutiny from the UK Competition and Markets Authority, which has launched an investigation into the practices of both companies. This investigation highlights the growing concern around the ticketing industry and the need for greater transparency and fairness. The outcome of the investigation could have significant implications for the way that Ticketmaster and StubHub operate, as well as for the wider ticketing industry. Ultimately, fans and other stakeholders in the live entertainment industry should welcome the CMA’s investigation as a step towards a healthier and more sustainable industry.
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