What is the 'dynamic pricing' that has angered Oasis fans?
Updates with CMA's probe in paragraph 11-12
Sept 5 (Reuters) -Thousands of Oasis fans waited long hours in virtual queues this weekend to get their hands on tickets for the British band's reunion shows next summer, only to find that prices had been hiked as part of a "dynamic pricing" scheme.
Many fans who waited for more than three hours thinking they would pay the initially advertised rate of 148.50 pounds ($195.10) ended up paying double at 355.20 pounds.
WHAT IS DYNAMIC PRICING?
Dynamic pricing, also known as surge pricing, is a strategy in which businesses push up prices at times of high demand. This is commonly seen in airline ticket prices and hotel room rates during holiday seasons, as well as Uber surge pricing during peak traffic hours.
WHO IS RESPONSIBLE FOR DYNAMIC PRICING?
Ticketmaster has said that for concert tickets, artists or promoters are responsible for determining the number of tickets and set the face value price of tickets. They can opt for dynamic pricing if they want and it is implemented once Ticketmaster gets their approval.
The agency representing Oasis did not immediately comment.
IS DYNAMIC PRICING LEGAL?
While dynamic pricing might seem unfair to customers, it is considered legal as long as the company follows laws and regulations related to pricing transparency, consumer protection and fair competition.
WHY WAS IT INTRODUCED?
Ticketmaster first introduced dynamic pricing in 2022, saying the practice was being used to try to stop touts, according to the BBC. Touts are people who acquire multiple tickets to sell them off at a profit later.
In Britain, marketplace Viagogo and StubHub are the two main secondary ticketing websites. Ticketmaster shut down its resale sites, GetMeIn and Seatwave, in 2018 after persistent criticism of ticket reselling by touts.
WHICH ARTISTS HAVE OPTED IN OR OUT OF DYNAMIC PRICING?
Dynamic pricing had been used in the UK for sales by Harry Styles, Coldplay and Blackpink, according to the BBC.
Bruce Springsteen gave Live Nation the green light to introduce dynamic pricing for his tour dates last year, the BBC said. Taylor Swift chose to opt out of using dynamic pricing on her The Eras Tour.
HOW ARE GOVERNMENTS RESPONDING TO THE OASIS TICKET SALE?
The UK's competition watchdog launched an investigation into Ticketmaster on Sept. 5 over the sale of Oasis concert tickets and how dynamic pricing may have been used, it said in a statement.
The Competition and Markets Authority (CMA) said it will scrutinise whether Ticketmaster breached consumer protection law and will also probe the conduct of other entities involved.
Britain's government said on Sunday it would investigate how prices for concert tickets sold on official websites are hiked when demand surges, after the Oasis ticket sale.
The government will include issues around the transparency and use of dynamic pricing in an already planned review of ticket sales and the protection of consumers.
Dublin MEP Regina Doherty has called for an investigation into Ticketmaster by Ireland’s Competition and Consumer Protection Commission (CCPC).
The CCPC believes there are legitimate concerns around the consumer experiences this weekend and is reviewing the situation, a spokesperson said. It will consider all options to ensure consumer protection law is followed.
Another Irish MEP, Cynthia Ní Mhurchú, said she would call for the EuropeanCommission to investigate the situation. She is a member of the EU Parliament's Internal Market and Consumer Protection (IMCO) committee.
WHAT ARE OTHER GOVERNMENT STANCES ON DYNAMIC PRICING?
For years, concert fans and politicians have been calling for a re-examination of Live Nation's purchase of Ticketmaster in 2010.
That intensified after the ticket seller in 2022 botched sales for Taylor Swift's first concert tour in years, sending fans into hours-long online queues and charging prices that customers said were too high.
The U.S.Department of Justice filed an antitrust suit against Live Nation LYV.N and its ticket selling unit Ticketmaster in April for allegedly monopolizing markets across the live concert industry.
Last year, the European Commission said it was monitoring dynamic pricing, emphasisingthat EU law prohibits dominant companies from imposing excessively high prices.
($1 = 0.7612 pounds)
Ticketmaster, others agree to upfront, all-in prices as part of Biden war on junk fees https://www.reuters.com/world/us/ticketmaster-live-nation-agree-all-in-prices-part-biden-war-junk-fees-2023-06-15/
Reporting by Radhika Anilkumar and Yamini Kalia in Bengaluru; Additional reporting by Conor Humphries and Graham Fahy in Dublin, William Schomberg, William James, Marti Coulter and Crystal Chesters in London; Editing by Yadarisa Shabong, Josephine Mason, Jan Harvey and Andrew Heavens
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