CCPC obtains commitments in LN-Gaiety/MCD acquisition

July 5, 2019

The Competition and Consumer Protection Commission (CCPC) has cleared, subject to a number of legally binding commitments, the proposed acquisition of sole control of MCD Productions Unlimited Company (MCD) by LN-Gaiety Holdings Limited (LN-Gaiety).

Following formal notification to the CCPC on 14 August 2018, the CCPC undertook an in-depth two-phase review to establish whether the proposed transaction would result in a substantial lessening of competition in any market for goods or services in the State.

The CCPC identified a number of competition concerns arising from the overlapping activities of Live Nation and MCD in the provision of primary ticketing services, the promotion of live events and the operation of live event venues in the State. These concerns included the likely impact on competition of future acquisitions of festivals or festival operators, the potential for anti-competitive information sharing, and the potential for retaliatory action against independent live event venues because they choose an alternative ticketing services provider.

To address these competition concerns, the parties submitted the following proposals to the CCPC:

  • To inform the CCPC in advance of any proposal to acquire control of a live music festival or a live music festival operator in the State, even if the proposed transaction would not meet the thresholds to be notifiable on a mandatory basis to the CCPC.
  • To take steps to ensure that the identity of artists that independent promoters propose to promote in the State, which is disclosed to a venue owned, operated or managed by Live Nation during the booking process for a live event is not directly or indirectly shared between Live Nation and MCD.
  • Not to refuse or threaten to refuse to provide live events to an independent live event venue as a result of that venue choosing to contract with a primary ticketing services provider other than Ticketmaster.
  • To conduct any contract or other negotiations relating to the supply of primary ticketing services by Ticketmaster to MCD on an “arm’s length” basis. This means MCD and Ticketmaster must each act independently and in its own interest.

Following detailed consideration and analysis, the CCPC concluded that these commitments were sufficient and effective in addressing the identified potential competition concerns. The commitments form part of the CCPC’s determination to clear the proposed transaction, which makes them legally binding on the parties.

Isolde Goggin, Chairperson of the Competition and Consumer Protection Commission said, “Today’s determination is the culmination of ten months of in-depth analysis and consultation. The assessment of a proposed transaction involving parties with interconnected activities and a sector with a limited number of players is particularly challenging and requires robust scrutiny. In all circumstances, the merger review mechanism requires the CCPC to examine the relevant markets to establish whether a substantial lessening of competition would occur if a proposed transaction were to be implemented. The CCPC’s review of the proposed transaction included economic analysis of the affected markets and evidence from third parties active at all levels of the supply chain including promoters, ticketing services providers, and live event venues. Taking into consideration the commitments provided by the parties, there is no evidence that the proposed transaction will result in a substantial lessening of competition in any market for goods or services in the State. The commitments obtained are legally binding and include requirements in relation to compliance reporting.”

The CCPC’s determination and the commitments obtained from the parties are independent of the CCPC’s ongoing investigation into the ticketing sector in the State and without prejudice to any potential action(s) that the CCPC might take in the future.

Further details of the CCPC’s determination are available here or to sign up for our merger alerts click here.

Ends

Additional Information

LN-Gaiety is a joint venture between Live Nation Music (UK) Limited (Live Nation) and Gaiety Investments Unlimited Company (Gaiety). LN-Gaiety owns and operates a number of live music festivals and venues, primarily in the United Kingdom but also the Electric Picnic live music festival in the State. MCD promotes live music events in the State and owns two live music festivals on the island of Ireland, namely Longitude and Vital. Live Nation provides primary ticketing services for live events in the State through Ticketline Unlimited Company (“Ticketmaster”) and also owns and operates the 3Arena, operates the Bord Gáis Energy Theatre and manages venues, including the Gaiety and Olympia theatres, on behalf of Gaiety.

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