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Thursday, 08, Oct 2009 09:29
By Lewis Bazley.
The UK Competition Commission has provisionally ruled against the planned merger of ticketing firm Ticketmaster and concert promoter Live Nation.
A statement from the competition watchdog said the merger could lead to higher ticket prices and limit the possibility for competition within the ticketing market.
The planned merger, announced in February, has also sparked concern across the Atlantic, with the US department of justice launching an inquiry into the deal.
As well as overseeing the operation of many concert venues, Live Nation is also a music management firm, with multi-platform deals with artists such as Madonna and Jay-Z that encompass album, publishing, merchandise and touring revenue.
The UK Competition Commission's concern comes ahead of the December expiration of an agreement between Live Nation and European ticketing agent CTS.
Christopher Clarke, a spokesman for the Competition Commission, said there was a fear that were the Ticketmaster-Live Nation merger to go ahead, Live Nation could "seek to limit" its relationship with CTS, concurrently reducing the number of tickets available to consumers.
This could result in higher ticket prices and may have "the effect of putting CTS's future prospects in the UK in considerable doubt", he added.
In response, Ticketmaster said the merger would boost the music industry as live music revenues now provide a significant proportion of revenues in light of increasing piracy.
"We believe this merger will build a more efficient and effective company moving forward, and that working together we will be able to help achieve needed change that will strengthen a flagging music industry," the firm said in a statement.
"We firmly believe that our merger achieves an important and much needed public interest, and remain optimistic that it will ultimately be approved."
The Competition Commission's final report on the matter is due for publication on November 24th.