UK's competition watchdog says Viagogo's StubHub deal will reduce competition

(Reuters) - UK's competition watchdog said on Thursday ticket reseller Viagogo's $4.05 billion completed deal for StubHub, the ticketing unit of U.S. e-commerce company eBay Inc <EBAY.O>, will reduce competition.

The Competition and Markets Authority (CMA) said its in-depth investigation provisionally found that the merger could result in a lower quality of service and higher fees for customers, who resell or buy secondary tickets to live events.

The regulator added it has set out potential options for addressing its provisional concerns, including requiring Viagogo to sell all or part of StubHub.

"Whilst we disagree with the provisional conclusion that the deal would reduce competition, we look forward to working with the CMA to deliver a comprehensive solution which addresses their concerns," a Viagogo spokesperson said.

EBay did not immediately respond to a Reuters request for comment.

EBay completed the sale of StubHub in February, a year after it came under pressure from activist investors to hive off some of its businesses.

(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Aditya Soni)