Ticketmaster Under FTC Probe: Bot Resales Put Fans and Regulators on Edge

The U.S. Federal Trade Commission (FTC) is investigating whether Ticketmaster is doing enough to stop illegal ticket-buying bots, which are automated programs that quickly purchase tickets to concerts and sporting events in bulk and essentially leave real fans with no option to purchase at the original price. This case will be watched very closely, and the agency may announce its decision on whether to proceed with legal action in the next few weeks.

Why Ticketmaster Is Under Scrutiny

Bots have been a problem in the live events industry for a long time, as they can acquire a large number of tickets in a matter of seconds after they go on sale. Those tickets are then sold at a significantly higher price on secondary markets or other ways that anger fans who are willing to pay the original price for a ticket, or that push the fan to purchase a ticket at all.

A federal law prohibits the use of automated technology to resell tickets, but the regulators are investigating whether Ticketmaster has done enough to enforce that ban. Based on Ticketmaster’s statements, it has developed advanced technology to block the bots, but critics believe the developments of Ticketmaster did not include real life performance.

The situation evolved into sharper relief following the tumult surrounding sales for Taylor Swift’s Eras Tour, where millions of fans were thwarted in their acquisition of tickets, while resale platforms filled with listings at exorbitant prices. The response to this discord has rekindled cries about how Ticketmaster operates and whether it is hurting, not only music fans, but consumers more broadly with its market power.

Legislators, artists, and fans have all expressed concern that the size and market influence of Ticketmaster conceivably allows them to impose high fees with no competition or alternatives to the fan experience. Some have called for increased oversight of Ticketmaster, or for the breakup of its parent firm, Live Nation Entertainment, which sells both tickets and promotes events.

What Could Happen Next

The FTC's investigation is an extension of years of pressure for Ticketmaster. Consumer advocates say that the company could do much more than simply hand out the tickets that they receive. They contend the company has failed to adapt to the new methods of resale bots, despite promises to do so.

Ticketmaster stated to be serious about fighting automated buying and spending money to improve security. The investigation, however, indicates that the regulators may be unhappy with that approach.

If the Federal Trade Commission decides to take case action, Ticketmaster could face repercussions, more stringent rules, or potentially even higher thresholds to prove that it is stopping abuse of its market power. Either way, it would also add to the bigger question of whether it is right for a single company to have that much power over a market for live events.

Ticketmaster is being investigated by the U.S. FTC to determine if the platform is putting in enough effort to prevent bots from illegally reselling tickets.

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Conclusion

The findings of the inquiry could help determine the future of ticket buying in the U.S. If the FTC were to rule against Ticketmaster, there is likely to be enhanced rules and a potential for more competition in the industry. For now, fans, artists, and policy makers will be paying attention to whether or not regulators think Ticketmaster's behavior has been acceptable, and whether it alludes to a bigger change on the horizon.