UK competition watchdog casts doubts over Live Nation / Ticketmaster merger

The proposed controversial merger between Ticketmaster, the world’s largest live event ticket company and global live promotion giants Live Nation has been criticised in the provisional findings of the UK Competition Commission.

The new company, reportedly part of an $880 (£505 m) deal between the parties may be forced to discontinue their UK operations or sell tickets through an alternate rival business as a result.

The Commission published a report last week stating that such a merger would make it difficult for new businesses seeking to enter the ticketing market. The report also expressed fears about the price of gig tickets going up and levels of good service for audiences declining due to the monopoly of the proposed merger.

Both Ticketmaster and Live Nation originated in North America but have immense global reach and power in the live music business.

In the UK, the Office Of Fair Trading referred the planned merger to the Competition Commission in June due to increasing concerns about its impact on the £1.9bn annual live music market.

As previously reported by The Gen, Bruce Springsteen (pictured above with members of the E-Street band) was an early vocal opponent of the merger, fearing a potential complete monopoly on live music.

The regulator’s preliminary findings focused on the case of German company CTS Eventim, the second-largest global ticket vendor after Ticketmaster.

The company landed a major deal to sell tickets to Live Nation events in December 2007. However, the commission concluded that if the merger went ahead, Live Nation would seek to block the deal and therefore seriously hinder CTS's development in Britain.

Christopher Clarke, Deputy Chairman of the Commission said in a statement: "We believe that, if the merger proceeds, Live Nation will seek to limit its relationship with CTS, with the effect of putting CTS's future prospects in the UK in considerable doubt”.

Ticketmaster and Live Nation responded in a joint statement, saying that they were confident of the merger going ahead. The statement read: “We firmly believe that our merger achieves an important and much needed public interest, and remain optimistic that it will ultimately be approved".

The companies also commented on the current problems faced by the record industry, stating: "The recording industry is a shell of its former self. Where the recording industry was once the economic engine for the music business, it is live entertainment that is now the future of the music industry”.

The Commission is seeking comments on its findings at their website and a final report will be issued on 24th November.

In the US, the deal is currently being investigated by the Department of Justice.

Stay tuned to The Gen for the latest updates!

Have your say! What are your thoughts on the proposed merger? Would such a monopoly result in no element of healthy competition or potential for new start up businesses in the live industry? What do you think of their comments on the recording industry? Would you have fears of increased ticketing fees in the event of the merger? Let us know what you think!