The UK’s competition regulator has opened an investigation into the proposed $4bn (£3bn) takeover of ticket resale site StubHub by its rival Viagogo, after music industry figures raised concerns about the potential impact on fans.
The Competition and Markets Authority (CMA) is inviting comment about Viagogo’s purchase of the business from eBay would have on the UK market.
It comes two weeks after campaign group FanFair Alliance, backed by senior figures in the music industry including the managers of PJ Harvey, Mumford & Sons and Arctic Monkeys, said the deal would hand a monopoly to Viagogo, which has faced frequent criticism over its business practices and treatment of consumers.
The CMA said it was seeking comment on whether a takeover would result in a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
Viagogo said: “It’s customary for regulators to review acquisitions of this size. We will work collaboratively with the CMA to address any of the enquiries.”
Switzerland-based Viagogo’s managing director Cris Miller has previously insisted that there was an “incredible amount of competition” in the UK resale market. He has also defended the company’s record, saying much of the criticism was based on “misunderstanding and myths”.
Interested parties will have until the 10 January to submit comment, after which the CMA will decide whether to launch a full investigation.
Adam French, consumer rights expert at Which?, said: “Viagogo has a long history of ripping off its customers and disregarding consumer law so it is vital this deal, which would increase its grip on the secondary ticketing sector, undergoes close scrutiny by the CMA.”
FanFair Alliance, which urged the CMA to investigate the deal last month, said: “Aside from the persistent controversies surrounding these platforms, both of which are almost wholly dependent upon large-scale commercial ticket resellers, a merger between Viagogo and StubHub would have profound and damaging impacts for UK audiences and music businesses.”
The group, which is expected to make a submission, has criticised Viagogo’s “persistent reluctance to follow consumer protection law” until it was forced into doing so by a court order obtained by the CMA.
The Guardian has previously uncovered evidence of the company’s alliances with powerful ticket touts able to harvest thousands of tickets ahead of genuine fans, as well as instances of profiteering from charity events.
This year Google banned Viagogo from paying to appear at the top of search results, sending its website traffic into freefall.
But Google reversed its decision earlier this week after the company made a number of commitments to clarify the information it displays to consumers.
The ban remains in place in Czech Republic, Sweden, Finland, Hungary, Japan, Slovakia and Taiwan, countries where Viagogo is still the subject of regulatory action.
