DOJ Proposes Settlement with SC Realtors

In May 2008, the DOJ sued the Consolidated Multiple Listing Service of Columbia, S.C., alleging that the operators of the service violated Section 1 of the Sherman Act by 1) requiring applicants for membership to discuss the nature of their businesses with a committee of incumbent members who had the power to deny membership to brokers who competed too aggressively; and 2) stabilized the price of brokerage services by fostering brokers to provide a full range of services regardless of the client’s needs.  Access to multi-listing services, which are a database of properties available for sale in a given area, are essential to a real estate broker’s ability to compete.  As a result, access to them has often been used to stifle competition among brokers.  The settlement would require the CMLS to permit any licensed broker to become a member and use the MLS service regardless of the broker’s business model.  In addition, it requires the CMLS to repeal rules that prohibited brokers from performing only specific services at a lower cost than the seller would otherwise pay a traditional, full-service broker.

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