Algorithmic pricing and competition: CLMA Discussion paper response

Prepared for:
Matthew Boswell, Commissioner of Competition
Competition Promotion Branch
Competition Bureau
50 Victoria Street, Gatineau, Quebec, K1A 0C9

In response to: Competition Bureau seeks feedback on algorithmic pricing and competition

Overview 

Canada’s live music industry does not use algorithms to adapt prices. Instead, companies use  humans - including artists and their teams - to set prices and monitor sales to create fairer,  more responsive dynamic ticket pricing.  

Dynamic pricing adjustments based on demand, decisions made by people, help promoters and  artists capture dynamic value in the primary market and reduces the influence of the secondary  resale market.  

As such, it would be advisable for live music ticketing to be removed from the Competition  Bureau’s consultation process on this topic moving forward. Continuing to include an industry  that does not employ algorithmic pricing tools would only perpetuate misunderstandings and  misinformation about how live music ticketing actually works.  

1. Use and growing prevalence in Canada 

While sectors such as retail and e-commerce, transportation and travel, and the attraction and  hospitality industries may use algorithms to manipulate pricing, the concert industry, including  promoters, artists, and venues, uses experts to manage and calibrate ticket prices to match  real-time demand, be it high, or low. Our sector does not rely on technological “algorithms”,  but human experts, to manage the spectrum of demand.  

This helps to improve economic efficiency and ensure fairer value distribution across the supply  chain.  

2. Where the data for pricing algorithms comes from 

Any data used to make decisions on pricing is coming from ongoing market assessments made  by the artist, promoter, and broader venue team.  

3. How it could impact markets and consumers 

Given that the sector does not use algorithmic pricing to make pricing decisions in the primary  market, the largest concern for the sector is fraud and deception in the secondary resale  market. 

By adapting prices to reflect real value, consumers are less likely to seek tickets through  unregulated secondary platforms where fraud, deception, and price gouging are common.  Dynamic pricing shrinks the arbitrage window that allows secondary sellers to profit  disproportionately, returning value to the creative economy. Artists are more likely to receive  compensation aligned with the true market value of their performance—ensuring sustainability of live touring and enabling reinvestment in future work. It can also help fill undersold shows  and limit cancellations. 

4. What challenges it presents for competition authorities 

The CLMA believes the main priority for competition and consumer protection authorities  should not be pricing strategies in the primary market, but rather ensuring that rules are  effectively enforced to prevent unlawful and misleading activities in the secondary market. 

● Insufficient Enforcement and Resources: Although many provinces have legislation  covering ticket sales in both primary and secondary markets—including bans on bots  and speculative listings—these laws are not yet being fully enforced. 

● Call for Updated Regulation: To properly manage the scale and complexity of the  secondary market, we urge governments to adopt policies that strengthen consumer  safeguards, such as: 

○ More Robust Enforcement: Proactively apply existing consumer protection laws  to curb fraudulent resale, speculative listings, and bot usage. 

○ Resale Price Caps: Resale activity is rampant. Caps are a means of eliminating  the outsized financial incentive for bots and resellers to stockpile tickets. 

The Canadian live music industry is not only culturally essential but also a significant economic  driver, contributing nearly $11 billion to GDP, supporting over 101,000 jobs, and returning  almost $4 billion in tax revenue to all levels of government1. Tools like dynamic pricing  empower Canadian live music companies to compete fairly with international actors who  undermine our market, defraud Canadian consumers, and erode our tax base. By supporting  the adoption of modern pricing strategies, we help strengthen a vital sector of our economy,  protect Canadian artists, businesses, and workers, and ensure that the substantial economic  and cultural benefits of live music continue to be realized here at home.

1 Hear and Now, Canadian Live Music Association - January, 2025