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26 November 2024

Ticketmaster Faces Backlash Over Monopoly Concerns

New legislation could tighten Ticketmaster's grip on the ticketing market amid fresh consumer protests

Ticketmaster has long dominated the ticketing industry, often drawing scrutiny for its practices and monopolistic tendencies. Recent changes to legislation, particularly the Mass Leads Act, have sparked fresh concerns among consumer advocates, who argue these rules may tighten Ticketmaster's grip even more.

The Mass Leads Act, primarily revamping economic opportunities around areas such as climate technology and artificial intelligence, contains stipulations affecting ticket sales. Specifically, this legislation allows ticket sellers to impose limitations on the transfer or resale of purchased tickets, potentially confining buyers to sell them only on the platform where they were originally acquired.

This approach has raised alarms among consumer advocacy groups, such as the Massachusetts Public Interest Research Group (MASSPIRG). They assert this law significantly hinders fans’ ability to resell tickets on competitive marketplaces, which could lead to inflated prices due to reduced competition among resale platforms. "Requiring event tickets to be transferable is both a key consumer protection and common sense," stated Deirdre Cummings, the Legislative and Consumer Program Director at MASSPIRG.

Interestingly, supporters of this law argue it safeguards consumers by ensuring tickets remain within reputable selling platforms. Advocates from Live Nation, the parent company of Ticketmaster, maintain this framework could protect fans, stating, "It's about whether the professional ticket brokers and the ticket resale sites can use their bots and all their other tactics to grab tickets meant for real fans." Dan Wall, Live Nation's Vice President of Corporate and Regulatory Affairs, suggested this law would give responsible fans more purchasing advantages when striving to obtain highly sought-after tickets.

Nonetheless, the law has come under fire just months after Live Nation faced serious legal challenges from the U.S. Justice Department. The lawsuit accused the company of undermining competition within the live music sector, highlighting how such practices could lead to higher transaction fees and disappointing customer service experiences.

Since Live Nation's merger with Ticketmaster back in 2010, this entity has managed to command over 80 percent of the live ticket market. Todd O'Boyle, the Senior Director of Technology Policy for the Chamber Of Progress, noted, "Massachusetts joined the federal antitrust suit against Live Nation — but now it’s opening the door for Live Nation to strengthen its monopoly by cutting off the transfer of tickets." This sentiment resonates with many, particularly among Massachusetts residents who are passionate about their local sports teams.

A coalition of consumer rights organizations even penned a letter to Governor Maura Healey, urging her to amend the bill. They emphasized how ticket transferability empowers consumers with greater control over their purchases, allowing them the flexibility to compare prices across various platforms. The letter emphasizes the importance of competition, arguing such restrictions only protect corporate interests at the expense of everyday fans.

Statistical evidence underlines the value of resale marketplaces for fans. According to Protect Ticket Rights, fans benefited financially to the tune of $13.87 million through resale marketplaces within Massachusetts. Beyond the state line, similar analyses indicated nationwide savings of about $351 million from 2017 to 2024 for sports fans accessing tickets through these secondary markets.

Live Nation responded to the backlash by dismissing consumer advocacy claims as misleading. They describe ticket-broker advocates as "masquerading as consumer watchdogs," highlighting their focus on limiting scalpers who exploit fans during the ticket purchasing process. "This bill ensures artists and teams have the choice to limit resale and protect their fans from exorbitant scalper markups," they argued.

The narrative surrounding Ticketmaster is no stranger to controversy. Take the recent example connected to the highly anticipated Oasis reunion tour next summer, where critics have highlighted Ticketmaster's contentious dynamic pricing strategy. This pricing model drives ticket costs up based on supply and demand, frequently leaving fans grappling with inflated prices.

Experts have suggested this may breach consumer law, triggering calls for investigations from high-profile figures like Culture Secretary Lisa Nandy. Her concerns stem from the notion of failing to adequately inform fans prior to sales, potentially misleading them about what they would truly be paying for their tickets.

When it came to handling ticket prices, The Cure's frontman, Robert Smith, became another line of defense for fans. He vowed transparency and fair pricing, promising, "the band has agreed on all ticket prices," and noted there would be no inflated prices on their upcoming tour – ensuring no "platinum" or "dynamically priced" tickets would be offered. Despite his efforts, once tickets went live, many fans voiced their frustrations around excessive ticket fees.

Smith didn't stop there. He made headlines by calling ticketing fees "unduly high" and pressing Ticketmaster to reimburse fans who overpaid. He questioned the absurd discrepancy seen within the tickets supposedly being offered at “face value,” which ended up being “weird” and overpriced as reported by several attendees.

The conversation around Ticketmaster and its market control raises significant questions. With consumers urging legislative changes and legal recourse against monopolistic behaviors, will the ticketing giant finally make adjustments to its policies catering to fan interests? Only time will tell as this contentious topic continues to evolve.

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