The Competition and Markets Authority (CMA) has launched an investigation into Ticketmaster over the sale of Oasis tickets for their upcoming reunion tour. The inquiry will focus on the use of ‘dynamic pricing’ and whether competition law has been violated by Ticketmaster, owned by Live Nation, the world’s largest entertainment company and co-promoter of the Oasis tour.
The probe into Ticketmaster has brought to light the controversial practice of ‘dynamic pricing’, where ticket prices fluctuate based on demand. Oasis stated yesterday that they were unaware that dynamic pricing would be utilised. The CMA is investigating if consumers were pressured into making swift purchasing decisions at higher prices than anticipated.
Manchester-based SJM, the promoter of the Oasis reunion tour, will also be scrutinised regarding the marketing and sale of tickets. The CMA is also considering whether to investigate other parties involved. Fans are encouraged to submit evidence, including screenshots, of their ticket-buying experiences.
Dynamic pricing adjusts prices according to market conditions such as high demand. While this can offer consumers lower prices when demand is minimal, it has raised concerns among fans of live events, who feel it is exploited to overcharge them. The CMA has stressed the necessity for transparency from ticket sales platforms, insisting they provide clear and precise information about pricing. Failure to comply could constitute a legal violation.
Sarah Cardell, Chief Executive of the CMA, emphasised, “It’s important that fans are treated fairly when they buy tickets, which is why we’ve launched this investigation. It’s clear that many people felt they had a bad experience and were surprised by the price of their tickets at check-out. We want to hear from fans who went through the process and may have encountered issues so that we can investigate whether existing consumer protection law has been breached.”
The CMA has also welcomed the government’s recent initiative to consult on stronger consumer protection measures in the ticketing sector. This has been a priority for the CMA for several years, following previous enforcement actions and recommendations to enhance the secondary tickets market.
The CMA has published its response to concerns raised by ministers Jonathan Reynolds and Lisa Nandy, addressing issues in the secondary market for tickets. The call for evidence will remain open until 5 pm on Thursday, 19 September 2024.
Speculation around the Oasis reunion tour has shifted from excitement to anger over ticket prices, prompting scrutiny from both government and regulatory bodies. Oasis has added additional dates at Wembley Stadium and possibly more at Manchester City’s Etihad Stadium.
Danni Hewson, head of financial analysis at AJ Bell, stated, “Judging by the vitriol sloshing around social media platforms the CMA won’t be short of responses to its call for evidence. The gig ticketing sector has been under scrutiny for years, particularly resale sites. But Ticketmaster’s US owner, Live Nation, is already under the microscope for what the US government have called monopolistic practices, with concerns that its size and dominance of the sector have resulted in higher prices and fewer options for consumers.”
The CMA’s investigation into the sale of Oasis tickets highlights critical concerns about dynamic pricing and consumer protection in the ticketing industry. With government backing and public interest, the outcome of this probe could lead to significant changes in how tickets are sold and regulated.