viagogo’s purchase of StubHub raises competition concerns in the online secondary ticketing market in the UK, a Competition and Markets Authority (CMA) investigation has found.
The CMA is concerned that the loss of competition brought about by the merger could result in customers who buy and resell tickets losing out as a result of higher prices and fewer options.
viagogo purchased StubHub in February 2020. Both companies have a significant presence in the UK’s secondary ticketing market. Together, they have a combined market share of more than 80% and are the number 1 and number 2 players respectively in the UK.
After completing its initial Phase 1 investigation, the CMA found that viagogo and StubHub are close competitors in an already very concentrated market with limited alternatives. It is particularly concerned that the merger would raise the prices for customers, including fans, who resell and buy secondary tickets to live events.
As part of its investigation, the CMA undertook extensive market testing and looked at evidence from a number of third-party stakeholders including consumer groups, customers, and competitors. It also examined the companies’ internal documents.
Full Content: Gov UK
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