- guardian.co.uk, Tuesday 22 December 2009 19.16 GMT
Madonna is one of Live Nation's roster of stars. Photograph: WNSL/Action Images / WNSL
A contentious merger between music promoters Ticketmaster and Live Nation cleared a major hurdle towards completion today as the Competition Commission executed a surprise U-turn by overriding concert fans' scepticism and approving the deal.
The commission announced that it no longer believed that the public will suffer if the two companies combine forces. But, with opponents in America campaigning vigorously for the US department of justice to give a red light to the tie-up, it could still be blocked.
Live Nation is the world's largest concert promoter, while Ticketmaster sells more tickets to its events than any other vendor. The pair announced plans to merge in February and Britain's competition authority initially expressed concern that the deal would push up ticket prices or make it harder for new companies to break into the box office market.
But after lobbying from the two companies which argued that critics had overstated their influence in the music industry, the commission dropped its opposition. Christopher Clarke, deputy chair of the commission, admitted it was "unusual" for the competition watchdog to change its mind in this way.
A key plank in the commission's ruling was the damage that could be caused to German ticketing firm CTS Eventim, which signed a deal with Live Nation to expand into the UK in 2007. Now, though, the commission has accepted Live Nation's argument that CTS will not lose out, and that it would be complicated and unfair to force the merged entity to sell off its UK ticketing arm.
Ticketmaster, the world's largest ticket seller, sold more than 140m tickets last year, while Live Nation's roster of stars includes Pink, Rihanna, Madonna and U2. The two firms welcomed today's decision, saying it "paved the way for the creation of the world's premiere live entertainment company".
Chris Edmonds, managing director of Ticketmaster UK, said: "Today's clearance is an important milestone in the regulatory review process, and brings the companies a step closer to creating a new kind of live entertainment business."
Across the Atlantic, the US Department of Justice is considering whether to take action. A website called Ticketdisaster.org was launched last week to put pressure on the DoJ and harness grassroots opposition, backed by five Democrat members of Congress who dislike the merger.
The rock star Bruce Springsteen has lent his voice to the merger's critics, urging his fans to lobby their political representatives to prevent a "near-monopoly situation in music ticketing". Industry experts suggested that the British decision meant the tie-up has a good chance of reaching fruition.
"The UK decision is surprising but it sets the stage that the deal could clear with US regulators," said Tuna Amobi, equity analyst at Standard & Poor's. "The only question might be what conditions the government might demand from the merged company."
Europe's largest fan-to-fan ticket exchange, Seatwave, expressed disappointment with the commission's decision, arguing that the deal will lead to higher ticket prices for concertgoers.
"The onus is now on Ticketmaster and Live Nation to demonstrate tangible, financial, consumer benefit, and we certainly hope they do," said Seatwave's chief executive, Joe Cohen. "The competition commission have given them an early Christmas present and now we'll wait to see if the US department of justice choose to stand up for fans or give them a lump of coal."
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