Unique
Realty Ltd has been fined $1.25 million dollars after admitting it colluded
with eleven other Manawatu real estate agents by agreeing to pass on Trade Me’s
2014 price increases. The Commerce
Commission is also pursuing Property Brokers Ltd and LJ Hooker Palmerston North.
This price-fixing agreement collectively
raised fees for property vendors; the real estate agents involved agreed not to
compete on price by making vendors pay Trade Me’s newly imposed fee of some
$180 per listing. Previously, agents
paid a flat rate subscription for unlimited Trade Me listings and absorbed this
cost as a general business overhead.
Unique Realty, Property Brokers and LJ
Hooker Palmerston North collectively hold about 75 per cent of the Manawatu
market. Evidence was given that Manawatu
real estate agents got together in a series of meetings in late 2013, responding
to Trade Me’s plan to switch from a subscription listing model to a charge for
individual listings. Their decision to
collectively force clients into paying individual listing charges amounted to
price-fixing, reducing consumer choice and preventing different agencies from
competing on price.
Trade Me reverted to its earlier
subscription-based model just over six months after imposing individual listing
fees. The court was told Manawatu real
estate agents still required clients to pay for on-line listings after Trade Me
reverted to a subscription charge.
Commerce
Commission v. Unique Realty – High Court (20.05.16)
16.086