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U2 on stage at Wembley Stadium
Live Nation acts include U2, pictured here on stage at Wembley Stadium

Watchdog blocks Live Nation merger with Ticketmaster

Simon English
8 Oct 2009


A merger to create the largest promoter of live music in the world was today blocked by the competition watchdog.

The Competition Commission ruled that the plan by Ticketmaster to join arms with Live Nation would give the combined company too much power in the market, leading to higher prices for fans.

The merge of the largest ticket seller with the largest concert promoter was instantly controversial when unveiled in February. Both firms had already been accused by music-goers of price gouging and of forcing smaller players out of the market.

The deal also split the music industry. Bruce Springsteen spoke out against it, while the management of U2 backed it. Springsteen said after a US ticket fiasco: “The abuse of our fans and our trust by Ticketmaster has made us as furious as it has made many of you.”

Today the competition authorities in Britain said the merger “could severely inhibit the entry of a major new competitor into the UK ticketing market”.

In particular, it could hinder a move by a rival, Europe's largest ticketing agent, CTS, to enter the field. “Live Nation would have the incentive to impede CTS's entry into the UK ticketing market in particular by minimising the supply of its tickets to CTS,” said the commission.

The US Justice Department is also investigating the proposed merger. Both companies are American with a strong presence in Britain.

The two companies have argued the merger would improve ticket price options, increase attendance at events and make ticket technology better. The combined business would have been valued at £1.6 billion.

Live Nation not only operates the majority of concert venues, it also manages many of the artists who play in them.

The company has signed artists including Jay-Z and Madonna to deals that include touring, publishing and albums, as well as huge concert promotion deals with the likes of U2, The Rolling Stones and Shakira. Discussing the negative reaction to the deal a few months ago, Ticketmaster chief executive Irving Azoff offered a pugnacious defence.

He told Time magazine: “It's really good that some of the press and some of the consumer groups out there that have hated the fact that there's been service charges on tickets and have hated Ticketmaster for the last 20 years have been able to spin all you people. But quite honestly it's a line of bull crap.”

Mr Azoff argues that a merged company would have been able to cut out middleman such as lawyers, venue owners and business managers, allowing artists to sell tickets to fans “quicker, faster, better and cheaper”.

Heavy metal group Pearl Jam first attempted to fight back against Ticketmaster's power in the Nineties. The band filed a lawsuit alleging that Ticketmaster is a monopoly, whose anticompetitive practices allow mark-up prices of more than 30 per cent. It lost the case.

Ticketmaster and Live Nation will now have a chance to appeal against the ruling. The Competition Commission said it invites comments from “interested parties” by 22 October.

Reader views (7)

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If you think that Ticketmaster's prices are over-inflated - do not touch LiveNation! I was treated to a "VIP Experience" at U2 by my boyfriend - a once in a lifetime treat. The hospitality was dreadful, the cost of the tickets compared to the cost of what we ate, drank and saw was ridiculous and the customer service I have (sometimes) received, since complaining to them has been worse still. I only wish I could warn more people to STAY CLEAR! YOU WILL BE RIPPED OFF!

- Donna Collins, UK, 09/10/2009 13:10
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Hurrah for this one. They're already too much of a monopoly as separate companies, let alone merged together into one big unholy alliance.
Have hated Ticketmaster's hefty fees/charges etc for years, but seems other companies out there just as bad - recently bought ticket for Massive Attack at Hammersmith Apollo via SeeTickets and got charged £4.80 on top of the ticket price of £36.10, about 12-13%! What a rip-off!

- Paxton Pat, London, 08/10/2009 23:09
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Well folks - Instead of paying an average of over £100 (booking , credit card charge, seating charge etc etc) for a couple of tickets including all the travel cost, over priced food and drink, poor treatment, poor sound and restricted view (meaning you just watch a video screen).

Why not buy the live DVD, make a good meal and favourite drinks in the comfort and warmth of your own home. No queuing for the stinky loos and paying £5 for a can of coke.

Only then will ticketmaster et al wake-up!

- Hansel, London, 08/10/2009 15:53
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This merger was plainly anti competitive and against the best interests of both fans and artists. Live Nation is already nigh on a monopoly on an international basis and Ticketmaster have a long record of excessive profiteering at the customer's expense.

Ultimately I would like to see international actions taken to break up Live Nation and for Ticketmaster's death grip on the ticketing business restricted to no more than a set market share.

What was once the ultimate in free wheeling and independent businesses, the live music industry, has been badly harmed bythese US based monolithic monopolies and that needs ti be reversed.

- Matthew, London, UK, 08/10/2009 14:22
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Can't stand the current sitation, espcially being charged to print my own tickets.
Also, was looking at tickets from seetickets yesterday and noticed that standing tickets at the venue (Hammersmith) had a £4+ service charge, yet seated ones at the same concert had a £2+ charge. This charge was attributed to the cost of postage and other charges. DO seated tickets cost more to post? I think not.
It's about time this was sorted.
It's a bit like the "arrangement" fees for mortgages that go up if you opt for a lower interest rate. Why do the banks not come clean and call these fees "our profit margin" and stop conning us. It does not take more effort to "arrange" a lower interest mortgage.

- David, London, 08/10/2009 13:29
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Good decision. Ticketmaster charges excessive fees just for printing a ticket.

- Artfuldodger128, London, 08/10/2009 12:44
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If they merge the ticket price will probably not go up, but sure as hell the booking fee will. Money for old rope and only good old Bruce has had the decency to speak out against them. All other artists just seem to worry about the £££ heading in their direction.

- Steve, London, 08/10/2009 12:30
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