CCS Issues Proposed Infringement Decision Against SISTIC

The Competition Commission of Singapore (CCS) has issued a Proposed Infringement Decision (PID) against SISTIC.com Pte Ltd (SISTIC) for contravening section 47 of the city state's Competition Act by, according to a CCS statement "abusing its dominant position in the ticketing service market via various exclusive agreements."

The decision would seem to be a victory for opponents of venue exclusive ticketing contracts that limit opportunities for venue hirers by controlling the ticketing agents that they may use for that venue.

Section 47 of Singapore's Competition Act prohibits a dominant firm from engaging in anti-competitive business practices that exclude competitors from competing in any market, resulting in harmful effects in Singapore.

SISTIC is the largest ticketing service and solution provider in Singapore. It sells tickets for events including pop concerts, musicals, theatre, family entertainment and sport, currently handling more than 90% of all events staged in Singapore.

The CCS statement continues "SISTIC has separate agreements with The Esplanade Co. Ltd and the Singapore Sports Council which contain explicit restrictions requiring all events held at the Esplanade and the Singapore Indoor Stadium respectively to use SISTIC as the sole ticketing service provider.

"Furthermore, it had 17 other agreements with event organisers that contained explicit restrictions requiring the event organisers concerned to use SISTIC as the sole ticketing service provider for all their events.

"Ticketing service providers such as SISTIC act as middlemen between two groups of customers - the event organisers and the ticket buyers - by providing them a platform to buy and sell tickets. When key venues such as the Esplanade and SIS are required to use SISTIC, event organisers who wish to hold their events at these venues have no choice but to sell tickets through SISTIC. CCS also noted that SISTIC raised its booking fees against ticket buyers by 50% to $3 per ticket in January 2008.

"The PID is a written notice setting out the basis on which CCS arrives at the proposed decision. Following the legal procedures, SISTIC is given eight weeks from today to put forth its responses, counterarguments and relevant facts for CCSâ consideration. CCS will consider the merits of the partyâs representations before finalizing its decision on whether there has been an infringement of the Act."

CCS' final decision on the matter is expected early in the New Year.