Bayleys fined $2.2M, Success Realty fined $900,000 in first of 13 price-fixing cases

Friday 1st July 2016

Bayleys Corp and Hamilton-based Success Realty have been ordered to pay penalties of $2.2 million and $900,000 respectively in the second and third of 13 High Court appearances by national and regional real estate agencies for price fixing.

The proceedings relate to three separate alleged price fixing and anti-competitive agreements among national real estate agencies, Hamilton real estate agencies and Manawatu real estate agencies in response to Trade Me changing its fees for listing properties for sale on its website. Manawatu real estate agency Unique Realty was the first to appear, in May, and was ordered to pay $1.25 million.

The Commerce Commission cut deals with Unique, Bayleys and Success and their cooperation was noted by Justice Patricia Courtney. But she also acknowledged, in her ruling on Bayleys, the seriousness of the conduct and its potential to affect a large number of transactions for residential properties. Each admitted its conduct breached the prohibition on price fixing in the Commerce Act.

The Commission said cases against the remaining 10 agencies, Property Page and three individuals remain before the Court.

The proceedings relate to alleged conduct in 2013 and 2014 by the national head offices of five major real estate companies, and separately by agencies in Hamilton and Manawatu. The alleged conduct occurred in response to Trade Me’s change from a monthly subscription fee to a per-listing fee for properties advertised for sale on its website.

BusinessDesk.co.nz

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