The Guardian has learned that the European Commission is investigating Ticketmaster’s ability to increase the price of concert tickets depending on demand. At the same time, the British competition authority has launched an “urgent investigation” into the Oasis concert fiasco.
The US ticket giant has been told it may have breached UK and European laws by increasing the price of some Oasis tickets from £135 to £350, leaving many fans devastated.
Ticketmaster compares its “dynamic pricing” to airlines and hotels, which increase their prices depending on demand, and says prices are set by the artists and their management.
The UK Competition and Markets Authority (CMA) said on Tuesday it would “urgently review” the use of dynamic pricing after Oasis fans criticized the “scandalous” inflation of ticket prices.
A spokesman for the regulator said: “Consumer Protection Act requires businesses to be fair and transparent in their dealings with consumers and businesses must provide clear and accurate information about the price people have to pay. Failure to do so may constitute a breach of the law.”
A European Commission spokesman confirmed that the European Commission is examining the use of dynamic pricing for concert tickets in light of growing concerns among parliamentarians in Brussels.
Dutch MEP Lara Wolters told the Guardian she wanted new laws to protect European consumers from this kind of price inflation.
She said: “The only winners in this situation are major ticket platforms, at the expense of fans who can no longer afford concerts. Companies know much more about their customers than the other way around.”
“This system is not about maximising joy by filling the stadium with an artist’s biggest fans, but about maximising profit from music like any other product.
“As a music fan, I find this soulless and want to put an end to it. So I’m pleased that the British government is taking on the issue and I expect the new European Commission to follow suit so that we can finally introduce new rules against unfair ticket sales.”
Dynamic pricing for concerts is common in the US, but relatively new in the UK and Europe.
A European Commission spokesperson confirmed that the practice was being investigated as part of a fitness check of EU consumer law, which is due to be published in the coming months.
The review aims to highlight the problems of dynamic pricing before MEPs consider solutions, including a possible ban and other, less extreme options.
The spokesman explained that while the practice itself was not illegal, the way it was applied could constitute a breach of EU directives – for example, if the price of a product was increased after a consumer had added the ticket to their online shopping cart.
It could also constitute a breach of EU law if ticket websites did not provide fans with the “necessary essential information” before purchasing the tickets on offer.
Hundreds of fans have filed formal complaints with the UK Advertising Standards Authority (ASA), claiming that Ticketmaster did not inform people in advance that tickets would be on sale for £350.
These tickets offer no additional value compared to the original £135 standing tickets. Four of the ‘coveted’ standing tickets cost fans a total of £1,423.55 – of which £73.55 was service and administration fees.
Fans only discovered that the price of a standard Oasis ticket had increased at the box office after spending several hours in online queues.
The CMA has said that stronger protection for concertgoers is needed and has previously taken action against major resale websites.
Culture Minister Lisa Nandy has said she wants to put an end to “rip-off resale” and the government has launched an investigation into the practice.
The Guardian has asked Ticketmaster for comment. Neither Oasis’ management nor the Gallagher brothers have commented on the criticism.
