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02 Feb 2021 | 12:48

CMA says Viagogo must sell StubHub's non-US business

(Sharecast News) - Viagogo must sell all of StubHub's business outside North America following the merger between the two, the Competition and Markets Authority said on Tuesday. The CMA said its in-depth investigation into the deal concluded that it would lead to a "substantial reduction" in competition in the secondary ticketing market in the UK. This could mean that customers who use secondary ticketing platforms face higher fees or poorer service in future.

In order to address this concern, the competition watchdog has called for Viagogo to sell StubHub's business outside North America. This will mean the StubHub international business, which includes the UK, will be independently owned and run by a separate company.

The CMA found that Viagogo and StubHub compete closely against each other in the UK's secondary ticketing market and have no significant competitors, with a combined market share of more than 90%.

Chair of the CMA inquiry group Stuart McIntosh said: "The CMA has focused on ensuring competition in this sector works best for UK consumers. After examining all the options, including unwinding the merger in full, the evidence shows that Viagogo selling StubHub's international business will resolve our competition concerns, effectively and proportionately.

"Creating a fully independent StubHub international business will maintain competition in the UK and help ensure that the users of these ticketing platforms don't face higher prices or poorer quality of service."

Viagog bought rival StubHub in February 2020 for $4.1bn.
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