{"id":103864,"date":"2025-03-26T14:27:32","date_gmt":"2025-03-26T14:27:32","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=103864"},"modified":"2025-03-26T14:27:32","modified_gmt":"2025-03-26T14:27:32","slug":"uk-ticket-resale-price-cap-cma-support","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/uk-ticket-resale-price-cap-cma-support\/","title":{"rendered":"UK competition regulator backs government plan to cap ticket resale prices"},"content":{"rendered":"\n

The Competition & Markets Authority has made a submission to the UK government that strongly backs a proposal for a resale ticket price cap.<\/span><\/h2>\n\n\n\n

The UK\u2019s Competition and Markets Authority (CMA) has formally backed the government\u2019s proposal to introduce a price cap on tickets resold via the secondary market. In its submission to the government\u2019s ongoing consultation, the CMA stated that such a measure would protect consumers from \u201cexcessive resale pricing\u201d and ensure a fairer ticketing system.<\/p>\n\n\n\n

The government\u2019s consultation<\/a>, launched in January, follows the Labour Party\u2019s commitment to tackling inflated ticket resale prices ahead of last year\u2019s General Election. The proposed cap would limit resale prices to a fixed percentage above the original ticket cost, aiming to stop ticket touts from charging fans excessive fees. While the CMA had previously recommended additional regulations to improve the secondary ticketing market, it did not initially propose a price cap. Now, it has acknowledged that a cap is necessary to prevent overpricing.<\/p>\n\n\n\n

In its submission, the CMA argued that price caps in secondary ticketing would not raise the same concerns often associated with similar interventions in other markets. This is because the cap would be based on the face value price set by the original ticket seller, meaning that \u201cthe market is still ultimately dictating the price.\u201d It also noted that the cap could reduce the number of professional resellers, which would likely lead to more tickets being available on primary ticketing platforms.<\/p>\n\n\n\n

The CMA further stated that \u201can effective ban on uncapped resale may increase the overall benefits to consumers, with less consumer surplus being transferred to resellers.\u201d This suggests that capping resale prices could result in a fairer system where more fans can purchase tickets at reasonable prices rather than being forced to pay inflated secondary market rates.<\/p>\n\n\n\n

However, the regulator emphasised that a price cap would only be effective if properly enforced. It called for a \u201cwell-designed and adequately resourced enforcement framework\u201d to ensure compliance. Given the nature of the secondary ticketing market, the CMA argued that both ticket resellers and the platforms they use, such as Viagogo, should be held responsible for enforcing the cap. \u201cMaking platforms liable for ensuring tickets listed on their sites are compliant with any price cap would significantly simplify enforcement and improve overall compliance,\u201d the submission stated.<\/p>\n\n\n\n

To further strengthen enforcement, the CMA proposed a licensing system for resale platforms. It explained that for high-demand events, there would be \u201cstrong incentives to circumvent the cap,\u201d making it essential for enforcement agencies to be able to act swiftly. If resale platforms were required to be licensed, authorities could take quicker action against non-compliance.<\/p>\n\n\n\n

Another challenge highlighted by the CMA is the transparency of ticket pricing. Since primary ticket sellers often apply extra fees to the face value price, it is not always immediately clear what a buyer originally paid for their ticket. The CMA suggested that the government should introduce a \u201cproportionate requirement for primary sellers\u201d to disclose original ticket prices, helping both consumers and regulators determine whether resale listings comply with the cap.<\/p>\n\n\n\n

The CMA\u2019s endorsement of the proposed cap comes at a time when secondary ticketing is facing increasing regulation worldwide. Last week, US-based ticket resale giant StubHub filed paperwork<\/a> for an Initial Public Offering (IPO) with the US Securities and Exchange Commission, acknowledging in its filing that tighter regulations in various countries could impact its business. The document noted that \u201cartists and promoters may attempt to disrupt the secondary ticketing market through lobbying for such restrictions regarding secondary ticketing policies.\u201d StubHub admitted that increased regulation \u201cwould require us to change certain aspects of our business, operations, and buyer and seller relationships to ensure compliance\u201d and that such changes could \u201cdecrease demand for services, reduce revenue, increase costs and\/or subject us to additional liabilities.\u201d<\/p>\n\n\n\n

\n\n\n\n

Check out the RouteNote blog for more articles around live music ticketing, and other music industry news.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Competition & Markets Authority has made a submission to the UK government that strongly backs a proposal for a resale ticket price cap. The UK\u2019s Competition and Markets Authority (CMA) has formally backed the government\u2019s proposal to introduce a price cap on tickets resold via the secondary market. In its submission to the government\u2019s ongoing consultation, the CMA stated that such a measure would protect consumers from \u201cexcessive resale pricing\u201d and ensure a fairer ticketing system. The government\u2019s consultation, launched in January, follows the Labour Party\u2019s commitment to tackling inflated ticket resale prices ahead of last year\u2019s General Election….<\/p>\n","protected":false},"author":27,"featured_media":103865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[30272,30606],"acf":[],"yoast_head":"\nUK competition regulator backs government plan to cap ticket resale prices - RouteNote Blog<\/title>\n<meta name=\"description\" content=\"The UK\u2019s CMA backs a government plan to cap ticket resale prices, aiming to protect fans from excessive pricing. Learn more here.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/routenote.com\/blog\/uk-ticket-resale-price-cap-cma-support\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK competition regulator backs government plan to cap ticket resale prices - RouteNote Blog\" \/>\n<meta property=\"og:description\" content=\"The UK\u2019s CMA backs a government plan to cap ticket resale prices, aiming to protect fans from excessive pricing. 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