Viagogo may be forced to sell StubHub to stop fans being hit with higher ticket prices

Viagogo will have to sell part or all of StubHub after a watchdog found that a deal between the two ticket-selling firms could lead to higher prices and worse service for fans.

The Competition and Markets Authority (CMA) provisionally ruled that Viagogo's takeover of its only major rival could cause a “substantial lessening of competition” in the sector.

Between them, the two companies have a 90 per cent share of the much-criticised ticket reselling market.

Viagogo completed its takeover of StubHub in February this year, with the CMA launching its so-called phase-two inquiry in June after concerns were raised.

Some music and sports fans feel that the two companies unduly inflate prices for tickets and charge excessive fees.

The CMA laid out a range of options for the companies. A full sale of StubHub would address all of the regulator’s concerns, while a partial sale would have to involve “at least the assets and operations of either StubHub or Viagogo that cover the relevant market – the supply of uncapped secondary ticketing platform services for the resale of tickets to UK events”.

The watchdog has set a deadline of 5 November for views on the possible remedies, and 12 November for the wider provisional findings.

Stuart McIntosh, chairman of the CMA inquiry group, said: “The evidence we've seen so far consistently points in the same direction – that Viagogo and StubHub have a market share of more than 90 per cent combined and compete closely with each other.

“We are therefore concerned that their merger could lead to secondary ticketing customers facing higher fees and lower quality services.

“We're now inviting comments on our provisional findings and possible remedies.”

Viagogo made “substantial” changes to its business model after the CMA took it, StubHub and two other ticket resellers to court for breaking consumer protection law.

Fans had been turned away from events after having bought tickets on the four companies’ platforms.

Andrea Coscelli, chief executive of the CMA, said at the time that customers who look for tickets on resellers must be told what seat they will get and whether they risk being denied entry to a venue.

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