AEG Wembley deal could threaten competition in music venue market

AEG, which also runs The O2, has signed a deal to operate Wembley Arena after Live Nation ended its contract in December.

The deal means AEG would run several large London music venues, after recently winning the five-year contract to run concerts in Hyde Park.

An OFT review takes place when a deal could cause a substantial lessening of competition in a particular UK market.

If the OFT it decides there is a significant risk of reduced competition, it can refer the deal to the Competition Commission under the Enterprise Act 2002 for heavier scrutiny. If the commission finds there is a competition risk, it could recommend that AEG divest several of its music venues for the deal to be approved.

A spokesperson for Wembley Arena’s owner Quintain told Event: "Quintain Estates & Development can confirm that it has signed a management agreement for Wembley Arena with AEG Facilities (UK) Limited, part of the Anschutz Entertainment Group. The deal is subject to review by the OFT."

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