US antitrust officials are investigating potentially anti-competitive practices in the residential real estate brokerage business, with a focus on compensation to brokers and restrictions on their access to listings.
The probe was detailed in a civil investigative demand, which is akin to a subpoena, issued by the Justice Department to CoreLogic, which provides real estate data to government agencies, lenders and other housing-market participants.
The US residential real estate industry has long faced criticism that it stifles competition among brokerages, protecting agent commissions that are higher than those paid by sellers in many other countries. In 2008, the Justice Department reached a settlement with the National Association of Realtors, a trade group, that was designed to lower commissions paid by consumers by opening the industry to internet-based brokers.
The investigative demand to CoreLogic, dated last month, follows a lawsuit filed against the Realtors association and real estate broker franchisors, including Realogy Holdings Corp., claiming they conspired to prevent home sellers from negotiating commissions they pay to buyers’ agents.
The Realtors association filed a motion to dismiss the lawsuit, arguing that it misunderstands the role of brokers. The trade group didn’t immediately respond to a request for comment on the lawsuit or the Department of Justice investigation.
“We believe this case has no merit and have moved jointly with the other corporate defendants to dismiss the case,” Realogy spokesman Trey Sarten said in an email. “Additionally, we have joined in NAR’s motion to dismiss.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Federal Judge Orders Google to Open Android App Store Amid Antitrust Pressure
Oct 7, 2024 by
CPI
Federal Judge Greenlights FTC’s Antitrust Lawsuit Against Amazon, Tosses Some State Claims
Oct 7, 2024 by
CPI
Supreme Court Rejects Uber and Lyft’s Appeal in California Gig Worker Suits
Oct 7, 2024 by
CPI
Supreme Court Sidesteps 5-Hour Energy Pricing Case, Allowing Antitrust Claims to Proceed
Oct 7, 2024 by
CPI
Tempur Sealy and Mattress Firm Argue FTC Proceedings Are Unconstitutional in New Suit
Oct 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh