Belgian Competition Authority Offers Only Qualified Support for Bill Seeking to Prohibit Dynamic Pricing for Cultural and Sporting Events
- 16/12/2024
- News
The committee for Economic Affairs, Consumer Protection, and Digitalisation of the federal Chamber of Representatives requested the Belgian Competition Authority (BCA) to give an advice on bill 56K0234 (here and here) which seeks to prohibit dynamic pricing for the sale of entrance tickets to events, including sporting and cultural happenings. While the BCA expressed sympathy for the bill’s rationale, which is to keep such events accessible to the widest possible audience, it took issue with the bill’s blanket prohibition of dynamic pricing and the concept’s definition (see, here and here).
Definition - The bill defines dynamic pricing as “a price determination technique that implies a very flexible and quick price change because of market demand”. The BCA sensibly proposes an alternative definition as follows: “a mechanism to determine prices of entrance tickets that vary in accordance with changes in supply and demand or other criteria during the period of reserving such tickets”. If adopted, this definition would do away with vague terms such as “flexible” and “quick” and would capture all pricing developments, including price reductions. It would also focus on changes during the process of reserving tickets.
Blanket prohibition - The BCA is of the opinion that a blanket prohibition would be an unnecessary and disproportionate encroachment on free market forces and is rather in favour of less intrusive alternatives that also do justice to a possible downward effect of dynamic pricing. The BCA is concerned that such a prohibition could cause event organisers to shun Belgium in favour of neighbouring countries. It therefore cites the possibility of a controlled or capped form of dynamic pricing that could have a downward effect on initial prices.
The BCA makes it clear that its advice does not prejudge a possible inquiry in a specific case and also shows awareness of recent developments in other jurisdictions, including the decision of the UK Competition and Markets Authority to open “a project to consider how dynamic pricing is being used across different sectors of the economy”.
The fate of the bill will remain uncertain as long as no new federal government succeeds the current caretaker government.
