Canada’s Competition Bureau attacks MLS (updated)
The door to real estate competition — and consumer choice — continues to slowly creak open in Canada. After three years of investigation and negotiation, the federal Competition Bureau is attacking the Canadian Real Estate Association and its Multiple Listing Service, it’s reported today. With more than 90 per cent of property transactions listed on MLS, Canadian home sellers face a near-monopoly and pay an average 5 per cent commission on selling their homes; at an average price of over C$300,000, that’s a C$15,000 hit. As previously blogged here, court challenges to CREA’s rules have been unsuccessful, but a Competition Tribunal ruling may encourage the belated arrival in Canada of American services such as Trulia and Zillow — or encourage publishers like Canwest Global’s Househunting.ca and Torstar’s Homefinder.ca to enhance their digital divisions’ existing use of Adicio products. “Though the mills of God grind slowly, yet they grind exceeding small,” at least in Canada. UPDATE: Globe & Mail says the Bureau’s actions won’t encourage American-style services, but Toronto Star says a separate investigation against Toronto Real Estate Board might do so. And further National Post coverage here (including quotes from a fellow with an unusual surname).
MLS wins, Canadian consumers lose in court
A real estate broker has lost his case against the Toronto Real Estate Board, leaving the board — temporarily at least — with its stranglehold on resale listings. As reported in The Globe and Mail, Fraser Beach (and by extension BCE Inc.’s short-lived realestateplus.ca) broke the club rules in 2007 when they downloaded MLS listings and republished them online. However, the Ontario Superior Court judge was clear that his decision does not address whether the MLS rules breach Canadian competition laws. A decision on that issue may yet, after all these years, be forthcoming from the federal competition bureau if it can’t reach an agreement with the Canadian Real Estate Association.
Canada to open up real estate listings?
Moving with typical Canadian speed, the country’s Competition Bureau is “shocked, shocked I tell you” to find the national Multiple Listing Service may be anti-competitive. It has apparently reached a (no doubt gentlemanly) tentative settlement with the Canadian Real Estate Association, which commands 5 and 6 per cent commissions on virtually all resale transactiions. As reported in The Toronto Star, the settlement may allow property information to finally become more freely available online, as in civilized countries. This a full seven years after the Toronto Real Estate Board paid $700,000 to settle with the same discount brokers currently suing both TREB and CREA for $100 million.
