The Competition Commission (CC) has provisionally ruled that the proposed merger between Ticketmaster and Live Nation would restrict fair competition in the live music ticket retail market.

Initial findings published by the commission found that the planned merger could have a negative effect on CTS Eventim, one of Europe's largest ticket agencies, which had signed a deal with Live Nation as part of its first venture into the UK market. According to the CC, the merger between the two US-based companies will restrict CTS Eventim's ability to both enter and compete in the UK ticketing market, which could result in higher net prices to the consumer.

Christopher Clarke, CC deputy chair and chair of the inquiry group, said: "CTS' agreement with Live Nation opened up the prospect of a major new competitor entering the market for live music ticket retailing in the UK. "The merger with Ticketmaster means that Live Nation will have every incentive to inhibit a significant potential rival from entering the UK market and, given the significance to CTS of its agreement with Live Nation in deciding to enter the UK market, we believe that Live Nation would be able to do so."

A joint statement from Ticketmaster and Live Nation said: "Live Nation and Ticketmaster respect the Competition Commission for its analysis of the merger and have cooperated, and will continue to cooperate, fully during this ongoing process. "Both our companies are committed to this merger and look forward to addressing any and all issues that the commission deems necessary."