The Competition Tribunal has set June 30 to hear motions for leave to intervene in the Commissioner of Competition v. Canadian Real Estate Association case.
Lawrence Dale, a principal with Realtysellers, and The National FSBO Network have both applied for intervenor status. The Commissioner of Competition supports Dale’s application but opposes The National FSBO Network’s motion, while CREA has adopted the opposite stance.
All of the case documents can be viewed here.
Meanwhile, in a speech to the Empire Club in Toronto last month, Commissioner of Competition Melanie Aitken spoke about the competition law and the application it filed against CREA.
“It is important to acknowledge that there are important areas – some new, some not – where there is little case law and that call out for clarification,” Aitken said. “As one looks around the world, one sees competition authorities willing to step in and be very clear about their commitment to establish the boundaries of where they will enforce.”
Aitken said the bureau is “currently working to complete updated enforcement guidelines on abuse of dominance and more detailed guidance for trade associations that clarify the impact of the recent amendments” and that it would “not hesitate to enforce the law by bringing responsible cases in areas where we believe it is important to establish and clarify applicable ground rules….In my view, nothing effects deterrence among those contemplating anti–competitive conduct like showing that we have the will and the courage to proceed where necessary.”
Addressing the CREA case, Aitken said, “Our challenge targets rules imposed by CREA that restrict consumer choice and innovation in residential real estate services across Canada. In our application, we have asked the Competition Tribunal to order CREA to do away, once and for all, with rules that severely limit the ability of consumers to select which real estate services they want and to pay only for those services.
“As many of you may also have heard, CREA recently amended its rules governing the use of the MLS system. Unfortunately, those changes do not solve the problem. Specifically, and as we have noted publicly in the past, the rule changes are inadequate because they explicitly protect CREA’s ability, at any time, to reinstate anti-competitive restrictions, and possibly more anti–competitive ones.
“The bureau has always preferred taking the time to seek a negotiated resolution. CREA has been aware of our concerns for over three years and we have negotiated with them in an effort to reach a settlement. We are convinced that a legally binding Consent Agreement or Competition Tribunal decision is necessary in order to achieve a lasting, permanent solution that will ensure consumer choice and provide real estate agents with the flexibility to offer innovative service and pricing options.
“Clearly, as this matter is ongoing before the tribunal, I do not intend to engage in a public debate on the merits of the case.”
