Viagogo

Viagogo. Viagogo is a global online marketplace operating in the secondary ticket market, facilitating the resale of tickets for events such as concerts, sports matches, and theatrical performances. Founded in 2006, the company has grown to become one of the world's largest ticket resale platforms, connecting buyers and sellers across numerous countries. Its operations and business practices have been the subject of significant scrutiny from consumer protection agencies, governments, and the live events industry.

History

Viagogo was established in 2006 by American entrepreneur Eric Baker, who had previously co-founded the rival resale platform StubHub. The company launched its services in the United Kingdom and rapidly expanded across Europe, later entering markets in Asia, Australia, and the Americas. In 2007, the company secured a substantial investment from Index Ventures, a venture capital firm, which fueled its international growth. A significant milestone occurred in 2018 when Viagogo acquired its primary competitor, StubHub, from eBay for approximately $4 billion, a deal that was later scrutinized by competition regulators including the Competition and Markets Authority in the UK. Throughout its history, the platform has been involved in high-profile partnerships, such as with Manchester United Football Club and AEG Presents, though many such deals have been controversial within the live events sector.

Business model and operations

The company operates as a digital intermediary, allowing sellers to list tickets for events, which are then purchased by buyers through its website and mobile applications. Viagogo generates revenue primarily by charging sellers a commission fee on each successful sale and adding substantial booking and transaction fees for buyers at checkout, a practice common in the secondary ticket market. Its platform utilizes dynamic pricing algorithms, meaning ticket prices can fluctuate based on demand, similar to models used in industries like airline ticketing and hotel bookings. The company's global reach encompasses a vast array of events, from major festivals like Glastonbury Festival to premier sporting events such as the FIFA World Cup and Wimbledon Championships. Sellers range from individual fans to professional ticket brokers, and the company provides a guarantee to buyers to mitigate the risk of invalid tickets.

Legal and regulatory issues

Viagogo has faced extensive legal challenges and regulatory actions in multiple jurisdictions concerning its business practices. In the United Kingdom, the Competition and Markets Authority pursued court action, resulting in a 2018 High Court order mandating the company to overhaul its website to provide clearer information on fees and seat locations. Similarly, in Australia, the Australian Competition and Consumer Commission initiated Federal Court proceedings, leading to penalties for making false or misleading representations. Authorities in Italy, through the Autorità Garante della Concorrenza e del Mercato, and in Spain, via the Comisión Nacional de los Mercados y la Competencia, have also imposed fines and mandated changes. In New Zealand, the company engaged with the Commerce Commission, agreeing to improve compliance with local fair trading laws. These actions often focus on alleged breaches of consumer protection statutes, including the Consumer Rights Act 2015 in the UK.

Criticism and controversies

The platform has been widely criticized by consumer advocacy groups, artists, and event organizers for practices perceived as exploitative. A primary criticism is the aggressive use of search engine optimization techniques that can place its advertisements above primary ticket vendors on search engines like Google, potentially misleading consumers. High-profile musicians and bands, including members of Arctic Monkeys and Ed Sheeran, have publicly condemned the site for enabling ticket touting and inflating prices for fans. Investigations by media outlets such as the BBC and The Guardian have highlighted cases where buyers were sold invalid or duplicate tickets for major events at venues like the O2 Arena and Wembley Stadium. Critics, including the advocacy group FanFair Alliance, argue that the company's model undermines the efforts of primary sellers like Ticketmaster and Eventim to ensure fair access and pricing.

See also

* StubHub * Secondary ticket market * Ticket resale * Consumer protection * Competition and Markets Authority

Category:Online marketplaces Category:Companies established in 2006 Category:Companies based in London