Competition watchdog to probe Oasis ticket rip-off

The Competition and Markets Authority (CMA) has today launched an investigation into Ticketmaster regarding the sale of Oasis tickets for the band’s upcoming reunion tour, including how so-called ‘dynamic pricing’ may have been used.

The CMA is scrutinising whether competition law has been broken by Ticketmaster, owned by Los Angeles based Live Nation, the biggest entertainment company in the world and co-promoter of the Oasis tour. 

One of the controversial issues that the Oasis ticket scramble has revealed is the use of so-called ‘dynamic pricing’ whereby prices change depending on demand.

Yesterday the band said in a statement that it had “at no time had any awareness that dynamic pricing was going to be used”.

The investigation will also look at whether people were put under pressure to buy tickets within a short period of time – at a higher price than they understood they would have to pay, potentially impacting their purchasing decisions 

Manchester-based SJM, the promoter of the Oasis reunion tour, will likely be questioned over the decisions taken in how tickets are marketed and sold.

The CMA will also consider whether it is appropriate to investigate the conduct of anyone else in relation to the matter.

Fans will be invited to submit evidence of their experiences trying to buy Oasis tickets. 

That evidence can include any screenshots they may have taken as they progressed through the purchasing process.

So-called ‘dynamic pricing’ works when a business adjusts its prices according to changing market conditions including high demand.

Consumers can benefit from cheaper prices when demand is lower, such as with hotel rooms and flights, but concerns have grown among fans of live sporting and music events that it is just used to rip off consumers. 

The CMA has insisted that ticket sales sites must be transparent in their dealings with consumers and give clear and accurate information about the price people have to pay. Failure to do so may breach the law.

Sarah Cardell, Chief Executive of the CMA, said: “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 also welcomes the government’s recent announcement that it will consult on measures to provide stronger protections to consumers in the ticketing sector, wherever they buy their tickets. This has been a priority focus for the CMA for several years, having previously taken enforcement action and recommended changes to improve the secondary tickets market. We are committed to working closely with government to tackle the longstanding challenges in the ticket market.”

In addition to the investigation launched today, the CMA has also published its response to a letter from ministers Jonathan Reynolds and Lisa Nandy, both North West MPs, and the Secretaries of State for Business and Culture respectively, on their concerns over secondary market tickets.

Responses to its call for evidence will be accepted up to 5pm on Thursday 19 September 2024.

Music industry estimates put the budget for the formerly feuding Gallagher brothers at £50m each.

Manchester-based SJM Concerts is one of the largest concert promoters in the UK, offering more than 2,000 concerts a year.

Founded by Simon Moran, also the chairman of Warrington Wolves Rugby League club, the company partners with other promoters.

The last set of accounts filed at Companies House show that the business made £17.7m of pre-tax profit on turnover of £275m for the year 2022.

A series of concerts at Heaton Park in North Manchester would use the site infrastructure for next June’s Parklife Festival, which Live Nation wholly acquired from Manchester promoter Sacha Lord earlier this year. SJM also had a stake in Parklife and The Warehouse Project.

After the initial excitement the talking points over the Oasis tour has now been dominated by fan anger over ticket prices, as well as government and regulator scrutiny. 

Oasis have added two more dates at Wembley, and the door is still open to more dates at the Etihad Stadium, home of Manchester City Football Club, who the Gallagher brothers support.

Danni Hewson, AJ Bell head of financial analysis, commented: “Judging by the vitriol sloshing around social media platforms the CMA won’t be short of responses to its call for evidence.

“The whole gig ticketing sector has been under scrutiny for years, with a particular focus on resale sites.

“But Ticketmaster’s US owner, Live Nation, is already under the microscope for what the US government have called monopolistic practices, with concern that its size and dominance of the sector has resulted in higher prices and fewer options for consumers.

“Its shares have come under a bit of pressure the last couple of days but over a year they’re up almost 15%, with must-see gigs like that promised by Oasis, and the stunning global success of Taylor Swift, showing that fans are willing to stump up hundreds of pounds to see their idols.”