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ACCC Launches Preliminary Inquiry Into REA Group Over Alleged Price Gouging

By  |  May 27, 2025

The Australian Competition and Consumer Commission (ACCC) has initiated a preliminary investigation into real estate platform operator REA Group, examining whether the company has exploited its dominant market position to impose excessive pricing, according to a statement submitted to the ASX.

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    The early-stage probe, which has not yet been publicly confirmed by the regulator, has seen the watchdog engage with real estate professionals and industry groups in recent weeks. Per a statement issued by REA, the company received a formal notice from the ACCC requesting information related to its subscription services.

    “REA is co-operating fully with the ACCC and is unable to comment further for confidentiality reasons. REA will continue to comply with its disclosure obligations and will update the market on this matter as appropriate,” the company noted in its ASX filing following inquiries from The Australian Financial Review.

    REA Group, majority-owned by News Corp with a 61 per cent stake, is valued at approximately $34 billion on the ASX. It operates realestate.com.au, Australia’s largest property listing site, along with commercial listing service realcommercial.com.au, lending platform Mortgage Choice, and property analytics firm PropTrack.

    Related: Top Australian Law Firms Target ACCC Talent Ahead of Major Merger Reforms

    Sources familiar with the matter, who requested anonymity, indicated that the inquiry centers around allegations of price gouging—specifically whether REA has used its considerable market share to charge unreasonably high fees for its services.

    While the ACCC typically does not comment on ongoing or potential investigations, industry chatter has revealed the extent of interest from the real estate community. According to a post seen by the Financial Review in a private Facebook group for New South Wales property managers, franchise leaders and representatives from industry bodies were scheduled to meet with the ACCC. The post requested feedback from group members to present to investigators.

    “Franchise Network Heads and Industry bodies are meeting with the ACCC later this week,” the post said. “Please provide your feedback in this thread so that it can be sent across to the ACCC Director & Lead investigator that is going to be at the meeting.”

    This is not the first time REA Group has come under the ACCC’s microscope. In early 2024, the regulator began examining the company’s acquisition of Dynamic Methods, a firm that plays a central role in managing legal documents for real estate transactions across most of Australia.

    Source: AFR