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Johannesburg – The Competition Commission on Tuesday
referred a case of exclusionary conduct against
online ticket booking site Computicket to the Competition Tribunal
for adjudication.
The case relates to the provision of outsourced ticket distribution services for entertainment events.
And if found guilty Computicket could potentially face an administrative penalty of 10% of its 2009 turnover.
It follows five complaints lodged between 2008 and 2009.
With a market share exceeding 95%, the Commission identified that Computicket was dominant in the market for outsourced ticketing services for entertainment events including theatres, festivals and live events.
In its investigation the Commission found that Computicket entered into long term exclusive contracts with theatre owners, theatre producers, promoters' and festival event organisers in the entertainment industry, preventing them from using any other ticketing provider. These contracts are predominantly for a period of three years, and have the effect of excluding Computicket's rivals, with a harmful effect on consumers. This is alleged to have taken place from around 1999 to date.
"Computicket's exclusive contracts prevent rivals from entering the market thereby reducing choice and convenience for consumers. As a result the commission and fees that it charges for its services are higher than they would have been in a competitive market," said Commissioner Shan Ramburuth.
The Commission has asked the tribunal to levy an administrative penalty of 10% on Computicket's 2009 turnover and to declare the exclusivity clauses in its contracts with inventory providers as void and of no force or effect.
- I-Net Bridge
The case relates to the provision of outsourced ticket distribution services for entertainment events.
And if found guilty Computicket could potentially face an administrative penalty of 10% of its 2009 turnover.
It follows five complaints lodged between 2008 and 2009.
With a market share exceeding 95%, the Commission identified that Computicket was dominant in the market for outsourced ticketing services for entertainment events including theatres, festivals and live events.
In its investigation the Commission found that Computicket entered into long term exclusive contracts with theatre owners, theatre producers, promoters' and festival event organisers in the entertainment industry, preventing them from using any other ticketing provider. These contracts are predominantly for a period of three years, and have the effect of excluding Computicket's rivals, with a harmful effect on consumers. This is alleged to have taken place from around 1999 to date.
"Computicket's exclusive contracts prevent rivals from entering the market thereby reducing choice and convenience for consumers. As a result the commission and fees that it charges for its services are higher than they would have been in a competitive market," said Commissioner Shan Ramburuth.
The Commission has asked the tribunal to levy an administrative penalty of 10% on Computicket's 2009 turnover and to declare the exclusivity clauses in its contracts with inventory providers as void and of no force or effect.
- I-Net Bridge
