ACM sees no reason for further investigation into resale tickets
The Netherlands Authority for Consumers and Markets (ACM) sees no reason to launch a further investigation into the sale of tickets by Live Nation. Live Nation is the owner of Mojo, which organizes concerts, Ticketmaster, which sells concert tickets, and Seatwave, an online resale marketplace for concert tickets. ACM did not find any evidence that the high prices that are asked for tickets that are resold on websites such as Seatwave are the result of illegal behavior by Ticketmaster and/or Seatwave. ACM comes to the conclusion that such high prices are caused by supply and demand in the market. Chris Fonteijn, Chairman of the Board of ACM, explains: “Although we completely understand the public outcry against very high ticket prices on resale marketplaces, our findings reveal that those prices are the result of scarcity and popularity, not of illegal behavior. If a product is in high demand, and supply is limited, prices go up. ”
Reports about steep prices
ACM found media reports, among other sources, about concert tickets that were offered by Ticketmaster, which were subsequently resold on online resale marketplace Seatwave at much higher prices. ACM did not find any evidence that the fact that these two companies belong to the same parent is harmful to consumers. According to ACM, it has not been established that concert tickets are resold exclusively on resale marketplaces like Seatwave or that certain arrangements have been made about ticket prices on such resale marketplaces. Moreover, Ticketmaster and Seatwave themselves are not active as ticket resellers. Seatwave merely offers consumers a platform where they are able to resell their tickets to others. Consumers themselves decide at what price they wish to offer or buy concert tickets on this platform.
In order to prevent ticket traders from stocking up on tickets for popular concerts, Ticketmaster has taken various countermeasures such as capping the number of tickets each customer can purchase. Sometimes, a limited number of presale tickets are sold before tickets go on sale officially, for example at the request of fan clubs. This explains why tickets are sometimes offered for resale on Seatwave before tickets officially go on sale.
Rules regarding resale of event tickets
In the Netherlands, there are no rules that prohibit the resale of tickets for events such as concerts. The price that individual suppliers can ask when reselling their tickets is determined by supply and demand. Very high prices, like those observed earlier this year with tickets for a concert of British artist Adele, are rare. Consumers must be clearly informed about the fact that these are resale tickets and whether any risks are involved because of the fact that these are resale tickets. That is why it is important that consumers pay close attention to whom they are dealing with, and what guarantees are offered to them.
More information about online resale tickets on ConsuWijzer
- Online resale of tickets for concerts, sports games and other events (in Dutch)
A bill proposing a cap on the prices of resale tickets has been brought to the floor of the Dutch Senate. According to ACM however, it remains to be seen whether the prices of resale tickets will actually drop as a result of this bill. ACM finds it important to point out the risk of illegal resale channels popping up if legal ones are closed down. If such markets go underground, oversight will only become more difficult. And the position of consumers can only deteriorate in such a scenario, ACM fears.