In Cofece’s sights?
This is not the first time that Ticketmaster has been in the public eye due to its ticketing practices. In December 2015, Cofece initiated an investigation into possible relative monopolistic practices in the market for the production and promotion of live shows, operation of centers for live shows and automated ticket sales.
“We know that the entertainment industry in Mexico has grown in recent years and is very dynamic, but we observe the existence of few economic agents in the different links. We know of the existence of economic agents that have attempted to provide services in these industries and we have seen that there have been problems with access, so we consider it appropriate to start the analysis of the conditions of competition in this market, and of the existence or not of these exclusivities or refusals of treatment”, said Carlos Mena, to Expansion in May 2016, as head of the Cofece Research Area.
In this investigation, those involved were CIE, OCESA, Ticketmaster, Sale of Tickets by Computer (VBC), ETK Tickets (ETK), Operadora de Centros de Espectaculos (Operadora) and Inmobiliaria de Centros de Espectaculos (ICESA). Cofece found evidence of conduct by one or more economic agents belonging to the CIE Group, which may have improperly displaced, prevented access to other participants or established exclusive advantages in favor of the Group companies that provide ticketing services.
However, the authority shelved the investigation in 2018, after Ticketmaster presented legal and economic commitments to restore its practices, among them, eliminating the exclusivity clauses that they maintain in their contracts with promoters and operators outside the CIE Group, among others. others.
What happens with the resale?
Sold-out tickets are a constant at Ticketmaster events, which has led to a large reselling of tickets at higher prices. And although it is a common practice, it is in a legal loophole that prevents taking action on the matter, although it ends up damaging consumers.
In the Economic Competition Law, it is prohibited for companies to establish conditions for the sale to third parties, who have already acquired the product or service, which limits Ticketmaster from taking action in the matter of ticket resale. Meanwhile, since it is not considered a felony, this activity is punishable by arrest for between 25 and 36 hours and a fine equivalent to 30 days of minimum wage.
“If the company were to establish measures to curb resale, it would be failing in a relative practice, so consumers can do what they want with the tickets,” says the Santamarina & Steta specialist.