The United Kingdom has stopped a proposed merger between ticketing giant Ticketmaster and touring company Live Nation from going ahead.
The UK Competition Commission has ruled that operation “could severely inhibit the entry of a new competitor, CTS Eventim, into the UK ticketing marketing.The ruling is expected to be replicated in the United States where concerns have already been raised about the deal.
Assistant Attorney General Christine Varney has already argued that the combined company "would enjoy a virtual stranglehold over the live entertainment industry."
A statement from Ticketmaster and Live Nation today reads:
"Live Nation and Ticketmaster respect the Competition Commission for its analysis of the merger and have cooperated, and will continue to cooperate, fully during this ongoing process. Both our companies are committed to this merger and look forward to addressing any and all issues that the commission deems necessary.
"But we must be clear about the challenges of the music industry, which is at a decisive crossroad. The recording industry is a shell of its former self. Where the recording industry was once the economic engine for the music business, it is live entertainment that is now the future of the music industry.
"We believe this merger will build a more efficient and effective company moving forward, and that working together we will be able to help achieve needed change that will strengthen a flagging music industry.
"During the course of this merger process, Live Nation and Ticketmaster have listened to our fans, artists and other stakeholders. We’ve heard a range of views regarding the issues and challenges facing the live music industry. We firmly believe that our merger achieves an important and much needed public interest, and remain optimistic that it will ultimately be approved."
