News | EU & Competition

OFT Calls for Firm Action on Touts

Friday 28th January 2005

The OFT recently released its findings in its market study into ticket agents in the UK. It found that the market was competitive between primary ticket agents; that the current contracts between promoters and agents are effectively competed for; that the main pricing issue for consumers is lack of information in advertisements; and that most customer complaints are about secondary ticket agents ("touts") who resell tickets at exorbitant prices.

SJ Berwin advised Ticketmaster UK throughout the study, including participating in meetings with the OFT and assisting with the creation of a market overview presented to the OFT to assist its study.

EU & Competition partner, Simon Holmes, commented, "We are proud to have assisted Ticketmaster throughout this investigation and delighted that the OFT recognised this to be a highly competitive and dynamic market."

Ticketmaster said "SJ Berwin not only advised TM UK on the legal and regulatory issues raised by the study, but also became a key member of the senior management team that worked closely with the OFT to assist its market study".


Notes:
  • The EU & Competition Department of European law firm, SJ Berwin is one of the leading UK and EU competition practices in Europe with strong working relationships with the European Commission and in the UK with the Office of Fair Trading ("OFT") and the Competition Commission. It has been a core practice area of the firm since its establishment in 1982.
  • The EU & Competition department of SJ Berwin advises on mergers, and JVs; state aid, cartel and monopoly enquiries; UK/EC complaints and litigation; notifications to competition authorities; regulatory work; IP and competition interface issues; advisory and compliance work; trade and customs; lobbying and Arbitrage.
  • Clients include: Associated British Foods, AES, AKZO Nobel, Alcan, Apax Partners, Blockbuster, British Land, Carlton TV, Channel 4, Coca Cola Enterprises, CSFB, Diageo, Dixons, Gullane, Guardian IT, Hilton Group, JVC, Mediaset, Metronet, Mmo2, Morgan Stanley Dean Witter, M&S, Pearson TV, Procter & Gamble; Reckitt Benckiser, RBS/Natwest, Swedish Match, UCI/UGC Cinemas, Universal Pictures and William Hill.
  • The department consistently features amongst the leaders in this field of expertise in major legal directories - Legal 500 ranks the department in the top tier in the UK. It is also acknowledged as an expert in Germany, Brussels and Spain and is only one of two Law firms ever to have been twice named 'Competition Team of the Year' by Legal Business magazine.
  • The team comprises 12 partners and over 25 other lawyers in London, Brussels, Munich, Madrid and Paris, with London and Brussels operating symbiotically. This pan-European team is headed up by Stephen Kon, who has over twenty years experience, specialising in advising on all aspects of EU law (particularly EU and UK Competition law) and appears regularly before the European Commission.
1. Ticketmaster UK is the UK's leading ticketing agency, providing supply and management of computerised ticketing systems and entertainment ticket distribution to a range of event promoters and venues. Its website ticketmaster.co.uk provides consumers with quick and secure real-time access 24-hours daily to Ticketmaster's wide range of tickets for rock and pop, theatre, performing arts, sports, and attractions. Ticketmaster is also a founding member of STAR (Society of Ticket Agents and Retailers), a London-based trade group that ensures quality and fair business practices for the live event ticketing industry.

2. SJ Berwin is a full-service international legal practice with more than 450 lawyers across its offices in London, Brussels, Frankfurt, Berlin, Munich, Madrid and Paris.

3. The OFT was conducting a market study, which was one of twenty market studies which the OFT has now pursued under the Enterprise Act 2002. Market studies were introduced by the OFT as a means of identifying and addressing whether a market as a whole is functioning appropriately, from competition issues to consumer detriment and the effect of government regulations. The OFT carries out an initial study out in order to decide what, if any, further action is needed.
 
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