Competition watchdog cranks up pressure on Viagogo’s $4bn takeover of Stubhub
Britain’s competition watchdog has ramped up its probe into Viagogo’s proposed $4bn (£3.2bn) takeover of rival ticketing website Stubhub.
The Competition and Markets Authority said it was concerned the deal would drive up prices and reduce choice for buyers.
This is in part because of the two companies’ already dominant position in the ticket resale market, of which Viagogo and Stubhub have about an 80 per cent combined share.
The takeover deal was signed weeks before the coronavirus outbreak halted the companies’ main markets of live music, theatre, and sports events.
Viagogo now has five days to propose “clear-cut” measures to put the CMA’s fears to rest.
If it does not, the investigation will move to a second phase, which could ultimately lead to the deal being blocked entirely.
The takeover would bring together two firms which have faced heavy criticism in recent years for mistreating consumers.
Both companies have faced accusations of helping ticket touts charge buyers hugely inflated prices to see their favourite musicians and sports teams play.
Since the coronavirus pandemic decimated their key markets, Forbes magazine labelled the takeover the “worst deal ever”.
Stubhub has also faced criticism for withholding refunds from its US customers for events cancelled since the pandemic broke out.
Viagogo said: “As we have throughout this process, we will continue to work diligently with the CMA during their review of the transaction.
“We remain committed to our belief that the combination of the two companies is a good move for customers worldwide.”