Eventfinda's chief executive James McGlinn says the sale should make it easier for people buying tickets to find events.
A consumer advocate and competition lawyer have raised questions over Ticketek’s purchase of event-listing and ticketing business Eventfinda.
The price was not disclosed, bar that it was somewhere below the Overseas Investment Office’s $100 million threshold for approval.
“It’s not great to see further consolidation in an already concentrated market,” Consumer NZ chief executive Jon Duffy told the Herald.
“This could lead to price increases for consumers.”
“It’s good the Commerce Commission is looking at it.”
ComCom spokesman Nick Truebridge said, “The parties approached the Commission to notify us of the transaction, which we are currently considering.”
A timeline was not immediately available.
The NZ-founded Eventfinda is being bought by Ticketek Entertainment Group (TEG), which describes itself as “Australasia’s leading integrated live entertainment business.”
None of the parties have provided market share information. Duffy was not aware of any stats. Ticketek is the ticketing partner for many A-list sports, venues and touring acts, with its website’s current listings dwarfing those of Eventfinda and Ticketmaster - which is huge globally but has a more contained presence in NZ.
Consumer NZ has highlighted booking, handling, service and what it calls “sneaky” fees charged by ticket retailers.
“The Commerce Commission will likely assess if the merger could lead to higher booking fees, reduced innovation, or diminished consumer choice,” competition lawyer Andy Matthews said.
“Concerns could include the impacts of combining TEG’s scale and infrastructure with Eventfinda’s discovery and distribution capabilities, and if the merged entity could foreclose rival ticketing platforms from accessing essential promotional channels or data,” Matthews said.
“If so, this could entrench TEG’s position and raise barriers to entry for new or smaller competitors.”
“Analogies can be drawn with the Live Nation–Ticketmaster merger, which prompted regulatory intervention due to similar vertical and horizontal concerns," Matthews said.
“In that case, behavioural remedies were imposed to preserve competition and ensure fair access to venues and ticketing systems, but there’s ongoing litigation.”
Ticketmaster and Live Nation, both based in the US, merged in 2010 - but authorities are now trying to unwind the deal.
“There are allegations of ‘monopolisation’ in a live case brought by the US Department of Justice and over 30 State Attorney Generals,” Matthews says.
Matthews notes that the Commerce Commission cannot impose behavioural conditions on a deal (although companies can volunteer conditions if they feel that enhances their chances of getting the green light).
While the parties may argue that the merger brings efficiencies and improved consumer experience, these benefits must be weighed against the potential for market foreclosure and reduced competitive pressure.
“Concerns could include the impacts of combining TEG’s scale and infrastructure with Eventfinda’s discovery and distribution capabilities, and if the merged entity could foreclose rival ticketing platforms from accessing essential promotional channels or data,” Matthews said.
“If so, this could entrench TEG’s position and raise barriers to entry for new or smaller competitors.”
TEG and Eventfinda have been asked for comment on the issues raised by Duffy and Matthews.
Ask to respond to Duffy’s concern the deal could less competition and increase ticket prices, TEG chief operating officer and head of global ticketing Cameron Hoy said:
“We see the acquisition as a win-win for both Eventfinda and Ticketek’s clients and audiences, and for competition in the sector.
“In particular, Eventfinda’s self-service ticketing platform and white-label functionality is an attractive offering for small to mid-tier venues and events, which is a growing segment of the live event sector that Ticketek has not focused on until now.
“There are also a range of other competitors in the broader sector that compete with each of Eventfinda and Ticketek in their respective segments.”
Hoy said market share was “hard to quantify”.
“But we can say that each of Eventfinda and Ticketek have to date had focused on different segments in the live event sector.”
Ticketek handled the likes of the All Blacks or Billy Joel playing Eden Park, Eventfinda was often used for local council events.
Eventfinda chief executive James McGlinn said his comnpany had been providing that to venues and organisers for the better part of 20 years.
The Ticketek deal would help Eventfinda grow faster. It would be maintained as a separate brand.
“Eventfinda started as an events guide and then we built a self-service ticketing system which operates at a lower part of the market,” McGlinn said.
“We work for everything from school fairs and fundraisers, right up to mid-size and that capability, we think, is unique.”
The two largest shareholders in Eventfina are McGlinn and the rich list Holdsworth family. Each have a 25% stake.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.