Britain's consumer watchdog has raised concerns over the planned merger of ticketing company Ticketmaster Entertainment with Live Nation, the world's largest concert promoter.
The Office of Fair Trading said it was referring the deal to the Competition Commission, Britain's competition regulator. Live Nation, which has a roster of stars including U2, Madonna and Coldplay and U2, unveiled the planned deal in February.
The OFT said the merger could reduce competition because the position of CTS Eventim, due to replace Ticketmaster as Live Nation's main ticketing agent, would be weakened or it may withdraw from the British market altogether.
CTS is the only other major ticket-selling firm in the UK. Live Nation already uses Ticketmaster as its principal ticket agent, but the contract runs out in December and it had agreed to switch to CTS.
The OFT also said the Competition Commission should examine whether Ticketmaster's market position could restrict competition for the promotion of live events.
'It creates a realistic prospect that the merger will deny those attending live music events the benefits of more competition in the distribution of tickets, which could include lower overall prices,' said senior OFT director Ali Nikpay.
Live Nation agreed early this year to buy Ticketmaster for $400m in shares but the plan has raised competition concerns on both sides of the Atlantic and is being examined by the US Department of Justice.
The Competition Commission is due to report by November 24. Live Nation and Ticketmaster have said they expect their merger to be completed in the autumn.
