| Tue 11 May 2010, 13:24 | | THEE - Competition Commission - Computicket to face exclusionary conduct charges |
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JSE
THEE
THEE - Competition Commission - Computicket to face exclusionary conduct charges
in Tribunal
Press Release
11 May 2010
Computicket to face exclusionary conduct charges in Tribunal
The Competition Commission has referred a case of exclusionary conduct against
Computicket to the Competition Tribunal for adjudication. This case relates to
the provision of outsourced ticket distribution services for entertainment
events.
This referral follows five complaints that were lodged by Strictly Tickets CC,
Soundalite CC (trading as Artslink), KZN Entertainment News and Reviews CC
(trading as Going Places), L Square Technologies CC (trading as TicketSpace),
and Ezimidlalo Technologies CC. These complaints were lodged during the period
2008/2009, and for purposes of investigation the Commission combined them, as
they raised overlapping issues.
With a market share exceeding 95%, the Commission identified that Computicket is
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, 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
percent 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.
ENDS
Further info:
Molebogeng Taunyane, Coordinator: External Communications
012 394 3289 / 082 646 8663 / molebogengt@compcom.co.za
Date: 11/05/2010 13:24:01 Produced by the JSE SENS Department.
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