OFT refers Tickemaster merger

The Office of Fair Trading has referred the planned merger of Ticketmaster and Live Nation to the Competition Commission.

The companies announced plans to combine in February and "promised measurable benefits to consumers" from the move.

However, the Competition Commission has joined the US Justice Department in investigating the legality of the transaction.

The OFT has suggested that a merger of Live Nation and Ticketmaster could threaten the place of CTS Eventim, whose entry in the market it believed would be good for competition.

Senior director Ali Nikpay said: "The proposed merger risks undermining this by potentially prompting the exit of what would likely have been a third large player from the UK, or at least significantly stunting its effectiveness.

"It creates a realistic prospect that the merger will deny those attending live music events the benefits of more competition in the distribution of tickets, which could include lower overall prices."

Rock star Bruce Springsteen has claimed that the joining of Ticketmaster with Live Nation would not benefit music fans.