Computicket Fingered by Competition Commission
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A case of exclusionary conduct has been filled against South African ticketing giant Computicket. In Johannesburg, on Tuesday the 11th of May the Competition Commission referred a case of exclusionary conduct to the Competition Tribunal for adjudication.
If found guilty Computicket could potentially face an administrative penalty of 10% of its 2009 turnover. This following complaints by Strictly Tickets CC, Soundalite CC (trading as Artslink), KZN Entertainment News and Reviews CC (trading as Going Places), L Square Technologies CC. The Competition Commission has combined the cases as they raise overlapping issues.
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 organizers in the entertainment industry, preventing them from using any other ticketing provider.
These contracts are predominantly for a period of three years. They prevent rivals from entering the market thereby reducing choice and convenience for the industry and its consumers. It's alleged that Computicket have been practising this since 1999 and today (11th of May 2010) still are.
As a result, Computicket are able to charge fees higher than what they could in a competitive market.
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