Competition Law And Ticketing Platform Market Power .

Competition Law and Ticketing Platform Market Power

1. Introduction

Ticketing platforms occupy a strategically important position in the live-entertainment ecosystem. They may provide primary ticketing, where tickets are initially sold on behalf of venues, promoters or event organisers, and/or secondary ticketing, where previously issued tickets are resold.

Competition concerns arise because a large ticketing platform can become an important gateway between event organisers and consumers. Once a platform has substantial scale, network effects, exclusive contracts, valuable transaction data, established technology and relationships with venues, competitors may find it difficult to expand.

The central competition-law question is therefore not simply whether a platform has a large market share, but whether its market power enables it to restrict competition through exclusionary conduct, discriminatory access, tying, exclusivity, refusal to deal, self-preferencing, or strategic acquisitions.

2. Relevant Markets

A ticketing platform can participate in several distinct but interconnected markets.

A. Primary ticketing market

This concerns the initial distribution of tickets by a platform on behalf of:

  • stadiums;
  • theatres;
  • concert venues;
  • promoters;
  • sports organisations;
  • festivals;
  • entertainment producers.

The United States' 2010 Ticketmaster/Live Nation litigation treated primary ticketing for major concert venues as a distinct competitive field. At the time, the DOJ alleged that Ticketmaster had more than 80% of primary ticketing for major concert venues.

B. Secondary ticketing market

This concerns platforms facilitating resale of tickets.

Examples include:

  • resale marketplaces;
  • ticket exchanges;
  • broker platforms;
  • consumer-to-consumer resale services.

The UK CMA's investigation of the viagogo/StubHub transaction treated online secondary ticketing as a separate competitive area and found the parties to be exceptionally close competitors.

C. Ticketing technology/services market

The platform may also supply:

  • ticket inventory management;
  • venue software;
  • digital ticketing;
  • access-control technology;
  • customer databases;
  • payment processing;
  • analytics;
  • dynamic pricing;
  • ticket distribution infrastructure.

A platform may therefore have market power in technology even where its consumer-facing market share is lower.

3. How Market Power Arises

3.1 Network effects

Ticketing platforms benefit from two-sided network effects.

More venues and promoters attract more consumers.

More consumers make the platform more attractive to venues and promoters.

This creates a reinforcing cycle:

More venues → more events → more consumers → greater platform value → more venues

Consequently, an established platform can become difficult for new competitors to challenge.

The German Bundeskartellamt specifically identified indirect network effects between event organisers and advance-booking offices/end consumers as an important factor in CTS Eventim's market position.

3.2 Exclusive contracts

Long-term agreements between platforms and venues can substantially restrict competitors' access to ticket inventory.

For example, the 2024 U.S. complaint alleged that Ticketmaster's exclusive primary-ticketing contracts with major venues lasted between three and fourteen years and restricted competitors' access to important distribution channels.

Such contracts become particularly problematic where:

  • the platform already has substantial market power;
  • important venues are covered;
  • contracts are long-term;
  • switching costs are high;
  • competitors cannot obtain comparable ticket inventory elsewhere.

3.3 Data advantages

Ticketing platforms can collect data concerning:

  • consumer demand;
  • ticket prices;
  • event popularity;
  • purchasing behaviour;
  • geographic demand;
  • resale activity;
  • venue utilisation;
  • artist popularity.

Data can improve:

  • pricing;
  • recommendations;
  • inventory management;
  • fraud detection;
  • targeted advertising;
  • demand forecasting.

Where competitors cannot obtain comparable data, data advantages may reinforce existing market power.

The Bundeskartellamt identified CTS Eventim's access to competitively relevant data as one factor strengthening its position.

4. Major Competition Concerns

A. Exclusive dealing

A dominant ticketing platform may require venues or promoters to use its platform exclusively.

The competition concern is foreclosure.

If a platform controls a large percentage of important venues, an exclusivity strategy can prevent competing platforms from obtaining sufficient inventory to achieve scale.

B. Refusal to provide access

A powerful platform may refuse:

  • API access;
  • ticket inventory access;
  • distribution access;
  • technological interoperability;
  • promotional integration;
  • data access.

A refusal becomes especially significant where the platform controls an infrastructure that competitors realistically cannot replicate.

C. Discriminatory treatment

A platform might provide favourable treatment to:

  • its own resale business;
  • affiliated promoters;
  • affiliated venues;
  • preferred brokers;
  • preferred distributors.

At the same time, competitors could receive inferior:

  • ticket allocations;
  • API access;
  • ranking;
  • promotional placement;
  • data access;
  • technical integration.

This can constitute an abuse of dominance depending upon the applicable jurisdiction and evidence.

D. Self-preferencing

A vertically integrated platform could give preferential treatment to its own:

primary ticketing → resale platform → advertising → payment service

ecosystem.

The competition concern is that the platform could use control over one market to disadvantage competitors in another.

E. Tying and bundling

A dominant ticketing provider could potentially condition:

  • ticketing services on payment services;
  • ticketing software on venue contracts;
  • primary ticketing on resale services;
  • ticket distribution on advertising;
  • event-management software on ticketing.

The relevant question is whether the bundle excludes equally efficient competitors or otherwise harms competitive conditions.

F. Excessive or opaque fees

Market power may also affect consumer-facing pricing.

Competition authorities may distinguish between:

  1. legitimate service fees;
  2. excessive pricing;
  3. misleading price presentation;
  4. drip pricing;
  5. hidden mandatory charges.

These are legally distinct theories.

For example, the Australian competition authority investigated Ticketek and Ticketmaster over presentation of unavoidable ticketing fees and obtained changes to make total prices clearer earlier in the purchase process.

5. Six Important Case Laws / Enforcement Decisions

1. United States v. Ticketmaster Entertainment, Inc. & Live Nation Entertainment, Inc. — 2010

Facts

Ticketmaster was the dominant provider of primary ticketing services to major concert venues. Live Nation was a major concert promoter and venue operator that had entered the ticketing business and therefore emerged as a significant potential competitive constraint.

The DOJ challenged the proposed merger.

The complaint alleged that Ticketmaster had more than 80% of primary ticketing services for major concert venues and that the merger would eliminate emerging competition from Live Nation.

Legal issue

Whether the merger would substantially lessen competition contrary to Section 7 of the Clayton Act.

Competition principle

The case demonstrates that market power cannot be analysed merely by looking at the immediate market share of a platform.

A potential competitor possessing complementary assets can be particularly important.

Live Nation had:

  • promoters;
  • venues;
  • relationships with artists;
  • access to event inventory;
  • the ability to introduce a competing ticketing system.

Outcome

The DOJ permitted the transaction subject to substantial remedies, including ticketing-software licensing, divestiture and anti-retaliation provisions.

Significance

The case established an important analytical framework for ticketing platforms:

market share + entry barriers + venue relationships + network effects + vertical integration = potentially substantial market power.

2. United States v. Live Nation Entertainment & Ticketmaster — 2024

This is a later and distinct antitrust proceeding.

Facts

The DOJ and numerous state authorities sued Live Nation and Ticketmaster, alleging monopolisation and exclusionary conduct throughout the live-concert ecosystem.

The complaint alleged that Ticketmaster's long-term exclusive contracts with major venues restricted competing ticketing providers' access to important distribution channels.

Legal issues

The allegations included:

  • monopolisation under Section 2 of the Sherman Act;
  • unlawful exclusive dealing;
  • exclusionary conduct;
  • leveraging of market power;
  • foreclosure of competing ticketing services.

Significance

The case illustrates the transition from traditional merger control to conduct-based regulation of dominant platforms.

The relevant question becomes:

How does a platform use its existing market position to preserve or extend that position?

Current development

The case has subsequently proceeded through litigation and settlement proceedings; the DOJ case record records a 2026 settlement notice and proposed final judgment.

The case remains particularly important for analysing platform foreclosure, venue exclusivity and vertical integration.

3. Bundeskartellamt v. CTS Eventim — Exclusive Contracts, 2017

Facts

CTS Eventim was regarded by the German competition authority as the largest ticketing system in Germany.

It had contractual arrangements requiring event organisers and advance-booking offices to sell tickets exclusively, or substantially exclusively, through its system.

Legal issue

Whether these exclusive arrangements constituted an abuse of CTS Eventim's dominant position.

Decision

The Bundeskartellamt prohibited the relevant exclusivity arrangements and required CTS Eventim to amend its contracts.

Competition principle

A dominant ticketing platform has a special responsibility not to use contractual arrangements to foreclose competitors.

Significance

The case is particularly relevant to:

  • exclusive dealing;
  • foreclosure;
  • dominant-platform obligations;
  • switching restrictions;
  • venue access.

It demonstrates that contractual freedom can be limited by competition law when a dominant platform uses exclusivity to restrict competitive access.

4. CTS Eventim / Four Artists — 2017

Facts

CTS Eventim sought to acquire Four Artists, an event organiser.

The German competition authority considered the transaction problematic because CTS Eventim already possessed a strong position in ticketing.

Four Artists supplied additional event inventory that could potentially become connected to CTS Eventim's ticketing system.

The Bundeskartellamt noted that around 60–70% of tickets sold through ticketing systems in Germany were sold through CTS Eventim's system.

Competition concern

The acquisition could strengthen CTS Eventim's position through:

ticketing platform + event organiser + exclusive inventory

This raised both horizontal and vertical foreclosure concerns.

Outcome

The Bundeskartellamt prohibited the acquisition. The prohibition was subsequently upheld by the German courts, including the Federal Court of Justice.

Significance

This is a classic example of platform concentration through vertical integration.

It shows why competition authorities may examine acquisitions of content or inventory suppliers by a powerful platform even where the acquired company is not itself a competing ticketing platform.

5. CMA — viagogo / StubHub — 2020–2021

Facts

viagogo acquired StubHub's international business.

The UK Competition and Markets Authority examined the transaction because both businesses operated major online secondary-ticketing platforms.

The CMA found that viagogo and StubHub were close competitors in an already concentrated UK secondary-ticketing market.

Competition concern

The transaction could remove one of the major competitive alternatives available to consumers and sellers.

The CMA's analysis demonstrates the importance of:

  • market shares;
  • closeness of competition;
  • number of credible alternatives;
  • entry barriers;
  • network effects;
  • consumer switching.

Outcome

The CMA ultimately required divestiture of StubHub's international business to address competition concerns.

Significance

The case is important for secondary ticketing platform concentration.

It shows that platform mergers may raise concerns even when the platforms do not own the underlying tickets themselves.

6. ACCC v. Ticketek Pty Ltd — [2011] FCA 1489

Facts

Ticketek had substantial market power in Australian ticketing-related services.

Lasttix sought to compete by promoting discounted last-minute tickets.

Ticketek refused on several occasions to implement discounted ticket arrangements where Lasttix was involved.

Legal issue

Whether Ticketek had taken advantage of its substantial market power for the purpose of preventing or deterring competitive conduct.

Decision

The Federal Court accepted that Ticketek had contravened the applicable Australian competition legislation.

Ticketek was penalised A$2.5 million.

Market-power findings

The agreed material identified Ticketek's approximate share as around 45% during the relevant period, while also identifying significant barriers to effective competition for full-service ticketing at major venues.

Significance

This case is particularly useful because it demonstrates that market power does not necessarily require a 70–90% market share.

A substantial degree of market power can arise from a combination of:

  • market share;
  • scale;
  • venue relationships;
  • technology;
  • distribution capability;
  • barriers to expansion;
  • limited effective competitors.

6. Comparative Legal Principles

Competition issueTicketing-platform concernIllustrative case
Market dominanceHigh share + network effects + entry barriersCTS Eventim
Exclusive contractsPreventing venues from using rival platformsCTS Eventim, 2017
Merger concentrationCombining major ticketing competitorsTicketmaster/Live Nation, 2010
Vertical integrationTicketing + promoters/venues/contentCTS Eventim/Four Artists
Secondary-market concentrationCombining major resale platformsviagogo/StubHub
Exclusionary conductUsing market power against smaller competitorsACCC v Ticketek
Long-term contractsForeclosure of competing platformsLive Nation/Ticketmaster, 2024
Price transparencyMandatory fees and drip pricingTicketek/Ticketmaster ACCC investigation

7. Application to a Modern Ticketing Platform

A competition authority examining a dominant ticketing platform would typically ask the following questions.

Step 1 — Define the relevant market

Is the relevant market:

  • primary ticketing?
  • secondary ticketing?
  • ticketing software?
  • venue ticketing?
  • online ticket resale?
  • event-management services?

Market definition is critical because a platform may have substantial power in one market but face meaningful competition in another.

Step 2 — Determine market power

Relevant factors include:

  • market share;
  • number of major venues served;
  • number of events;
  • consumer base;
  • network effects;
  • switching costs;
  • technology;
  • brand recognition;
  • data;
  • exclusive contracts;
  • access to important event inventory.

Step 3 — Examine barriers to entry

Potential barriers include:

  • technological investment;
  • venue integration costs;
  • cybersecurity requirements;
  • payment infrastructure;
  • consumer trust;
  • access to ticket inventory;
  • long-term venue contracts;
  • economies of scale;
  • established data networks.

Step 4 — Identify exclusionary conduct

Particular scrutiny may be appropriate where a powerful platform:

A. imposes exclusivity;

B. refuses interoperability;

C. discriminates against competing platforms;

D. gives its own resale business preferential access;

E. ties ticketing to other services;

F. uses long-term contracts to foreclose rivals;

G. acquires an important competitor;

H. acquires event promoters or ticket inventory;

I. restricts access to commercially important data.

8. Two-Sided Market Analysis

Ticketing platforms are usually two-sided or multi-sided markets.

They connect:

Event organisers / venues ↔ Ticketing platform ↔ Consumers

Sometimes there is a fourth side:

Ticketing platform ↔ Resellers / brokers

Therefore, market power should not be evaluated solely by looking at consumer prices.

A platform could charge consumers relatively low prices while extracting value from:

  • venues;
  • promoters;
  • artists;
  • advertisers;
  • resellers.

Conversely, a platform might subsidise consumers while charging venues significant fees.

The competition authority must therefore examine the entire platform ecosystem.

9. Network Effects and Entrenchment

The most important structural problem is the possibility of a feedback loop:

More venues
↓
More events
↓
More consumers
↓
More transaction data
↓
Better technology and pricing
↓
Greater attractiveness to venues
↓
More venues

This can create self-reinforcing market power.

The CTS Eventim decisions are especially useful because the German competition authority expressly considered indirect network effects and data advantages in assessing market power.

10. Essential-Facility Considerations

In exceptional circumstances, a ticketing platform's infrastructure might raise an essential-facilities/refusal-to-deal issue.

However, merely being commercially important does not automatically make a ticketing platform an essential facility.

Typically, questions would include:

  1. Is the facility indispensable?
  2. Can a competitor realistically reproduce it?
  3. Is access technically and economically feasible?
  4. Is access being refused?
  5. Is there an objective justification?
  6. Would refusal eliminate effective competition?
  7. Can access be provided without compromising legitimate security or operational requirements?

The doctrine therefore requires careful factual analysis rather than simply assuming that a large ticketing platform must provide access.

11. Merger-Control Risks

Ticketing platforms face particularly important merger-control issues because acquisitions can occur at different levels of the ecosystem.

Horizontal acquisition

Ticketing Platform A + Ticketing Platform B

Risk:

elimination of direct competition.

Example: viagogo/StubHub.

Vertical acquisition

Ticketing Platform + Event Promoter

Risk:

foreclosure of rival ticketing platforms.

Example: CTS Eventim/Four Artists.

Conglomerate acquisition

Ticketing Platform + Payment/Advertising/Data Platform

Risk:

leveraging power from one ecosystem into another.

Platform + Venue acquisition

Risk:

preferential access to important ticket inventory.

12. Consumer Welfare Issues

Market power can ultimately affect consumers through:

  • higher service fees;
  • reduced choice;
  • limited availability of alternative platforms;
  • reduced innovation;
  • resale mark-ups;
  • opaque mandatory charges;
  • discriminatory treatment;
  • reduced ticketing quality;
  • inferior customer service.

However, high ticket prices alone do not establish an antitrust violation.

A competition authority generally needs to connect the pricing or conduct to an identifiable competition-law theory, such as:

  • abuse of dominance;
  • monopolisation;
  • exclusionary conduct;
  • unlawful exclusive dealing;
  • anticompetitive merger;
  • discriminatory access.

13. Important Legal Lessons from the Cases

Principle 1 — Market share matters, but is not conclusive

ACCC v Ticketek demonstrates that substantial market power can exist even with a market share substantially below 50%, depending on competitive constraints and market structure.

Principle 2 — Network effects can strengthen dominance

CTS Eventim illustrates how network effects between organisers, distributors and consumers can reinforce platform power.

Principle 3 — Exclusivity can produce foreclosure

The CTS Eventim exclusive-contract decision demonstrates the competition-law risks associated with forcing event organisers and booking offices to use a dominant platform exclusively.

Principle 4 — A competitor's emergence can itself be competitively significant

The Ticketmaster/Live Nation merger showed that a relatively new entrant can represent an important competitive constraint where it possesses complementary assets capable of overcoming entry barriers.

Principle 5 — Vertical integration requires scrutiny

CTS Eventim/Four Artists demonstrates how acquisition of event-organising capacity can strengthen an already powerful ticketing platform.

Principle 6 — Secondary ticketing is capable of substantial concentration

viagogo/StubHub demonstrates that competition authorities can intervene where a transaction removes major competitive alternatives in secondary ticketing.

14. Conclusion

Ticketing platform market power is a multidimensional competition-law problem. The relevant issue is not simply whether a platform sells a large number of tickets. Market power can arise from the combination of venue relationships, network effects, exclusive contracts, data advantages, technological infrastructure, consumer scale, brand recognition and control over valuable ticket inventory.

The principal competition risks are:

Market concentration → Network effects → Exclusive venue contracts → Foreclosure → Vertical integration → Self-preferencing → Reduced competition → Higher fees/reduced choice

The six major authorities discussed—Ticketmaster/Live Nation (2010), Live Nation/Ticketmaster (2024), CTS Eventim exclusive contracts, CTS Eventim/Four Artists, viagogo/StubHub, and ACCC v Ticketek—provide a useful comparative framework for analysing both primary and secondary ticketing platforms.

For an examination answer, the core proposition can be stated as:

A ticketing platform with substantial market power is not prohibited merely because it is large; competition law becomes engaged when that power is acquired, maintained or leveraged through conduct that materially restricts competitive access, forecloses rivals, eliminates competitive constraints, or otherwise harms the competitive process.

 

 

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