Ticket resale website Viagogo has months to sell StubHub’s operations outside North America, after the UK competition watchdog ordered it to unravel large swathes of a US$4 billion takeover that shook the world of live events.
The Competition and Markets Authority (CMA) stated combining two businesses with 90% of the UK’s market for concert, theater and sports ticket resale would have reduced competition, potentially leading to higher fees and worse service for consumers.
It said Viagogo could keep StubHub’s US and Canadian operations but must sell its UK and international arms. The CMA has typically given the selling company several months to find a buyer in similar cases.
The regulator can take over the process if a sale does not happen fast enough and has no obligation to achieve a high price to recoup any of Viagogo’s US$4 billion spend on the deal.
The CMA’s order is a tougher version of a proposal made last year by Viagogo, which has faced controversy in the UK for flouting consumer law, working with powerful ticket touts and launching a legal battle against Ed Sheeran.
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