Singapore Watchdog Fines SISTIC

Singapore’s competition watchdog, the Competition Commission of Singapore (CCS ), has fined SISTIC.com Pte Ltd, the dominant ticketing operator in Singapore, S$989,000 for having stymied its counterparts’ ability to compete.

In its first and harshest decision against a company for abusing its dominant position, the CCS called the fine a “careful and considered decision” after “in-depth economic analysis”.

The CCS had taken action against SISTIC for contravening section 47 of the city state's Competition Act by, according to a 2009 CCS statement "abusing its dominant position in the ticketing service market via various exclusive agreements."

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.”

Altogether, the exclusive agreements dating from 2006 represented 60 to 70% of the market, restricting other players such as Tickets.com, Gatecrash and Global Ticket Network from gaining business and expanding their customer base.

As a result of the agreements, ticket buyers could buy tickets only through SISTIC, causing prices of tickets to increase for which consumers had to bear, said CCS.

CCS also noted that SISTIC raised its booking fees against ticket buyers by 50% to $3 per ticket in January 2008.

Commenting on the case on the Full Houses website, ticketing expert Tim Roberts has suggested that “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.

“This is in direct contradiction of the USA and UK governments’ positions and findings with respect to the Live Nation Ticketmaster merger. “

Roberts continues that “I am not sure how a contract for one agent ticket agent to sell the tickets on behalf of the event owner has a causal link with increases in the face value or price of tickets? SISTIC does not set the price of the tickets, however, they do set the price of some of the transaction costs worn by the event owner (inside charges) and the consumer (outside charges).

“But it must be noted that inside and outside charges in Singapore are at very low level internationally as a proportion of ticket price.”

For more information go to www.fullhouses.org/

18th December 2009 - CCS ISSUES PROPOSED INFRINGEMENT DECISION AGAINST SISTIC