Realestate.com.au removes restrictive provisions

REA Group and realestate.com.au have undertaken to remove restrictive provisions from contracts with real estate agents.

In its press release, the ACCC notes it ‘was concerned that REA’s contracts with real estate agencies contained anti-competitive restrictions, including clauses that required all properties to be listed on realestate.com.au, and that this limited the ability of REA’s rivals to compete.’

The ACCC notes that the REA does not share the ACCC’s concerns, but has agreed to resolve the concerns through the undertaking. In particular, it has undertaken that it:

• “will not enter into any new agreements with real estate agencies that contain a provision (and will not enforce any provision of an existing agreement) that:

  • requires a real estate agency list all or the majority of their properties on realestate.com.au, or

  • requires as a condition of receiving sponsorship funds, that the real estate agency commits to list or upgrade the listing of all or the majority of its listed properties in respect of any future period at or to a particular listing tier, or

  • does not offer a choice for the real estate agency to downgrade at least 25% of the agency’s eligible sale listings to a lower listing tier,

• will re-engage with the ACCC, after 24 months, to jointly consider the progress of amendments made to its business practices in accordance with the undertaking, and

• will establish and implement a competition law compliance program.”

The undertaking is for three years.

See media release.

See undertaking.