Bondi asserted that antitrust enforcement will be a “priority” as attorney general, suggesting the real estate industry must prepare for continued full-scale investigations into its practices.
Whether you’re refining your business model, learning new technology, or finding a strategy to take advantage of the next market boom. inman connect new york It will prepare you to take a bold step. The next chapter is about to begin. Please join us. would you like to join Join thousands of real estate leaders from January 22-24, 2025.
Pam Bondi was grilled by U.S. senators on Wednesday and Thursday during Senate confirmation hearings to become the next U.S. attorney general, and was asked to respond to requests from the Department of Justice to revitalize the public image of the U.S. Department of Justice (DOJ). Until then, various concerns of lawmakers were addressed. President Trump etc.
Sen. Chuck Grassley (R-Iowa) asked Bondy how he would enforce antitrust laws to best protect consumers. This has been a top-of-mind issue for many real estate professionals over the past few years, as the Department of Justice has been a huge success. Players such as the National Association of Realtors (NAR) and RealPage engage in conduct that is considered anti-competitive in nature.
“Antitrust enforcement is critical to ensuring market fairness and protecting consumers,” Sen. Grassley said Wednesday. “I worked with the Department of Justice. [Federal Trade Commission] Carefully scrutinize mergers and be on the lookout for anti-competitive or predatory behavior. I am closely monitoring these issues as they impact my state of Iowa, particularly the agriculture, health care, and technology industries, and I am interested in your efforts to make antitrust enforcement a priority. I am. ”
Mr. Bondi vowed that as attorney general he would work to uphold antitrust laws.
“Antitrust enforcement was a top priority when I was a state representative, and it will be a top priority if I am confirmed as attorney general,” Bondi said. “Again, we’re very proud to have Gail Slater in charge of it. She’s loved by both sides.”
Slater, who previously worked at the FTC, was appointed by President Trump in December to head the Justice Department’s antitrust division.
With the settlement of the Commission lawsuit, NAR and other major players in the industry addressed some of the Department of Justice’s concerns about industry practices, including increased transparency on how agents are paid in new contracts and the elimination of collaboration fees. . A home seller agrees to pay a commission to the seller’s agent, and that commission is shared with the agent who brings the buyer to the transaction.
Still, the industry remains firmly under the Justice Department’s radar. With Slater and Bondi’s commitment to scrutinizing antitrust practices, the real estate industry must prepare for continued scrutiny of the industry.
On Monday, the Supreme Court rejected NAR’s appeal in a case with the Department of Justice. This means the Justice Department can reopen its investigation into NAR’s commission and pocket listing rules. The Department of Justice says the Sitzer|Barnett settlement does not go far enough and says listing brokers and sellers may not make any preemptive offers of compensation to buyer brokers, even outside of the MLS.
Similarly, the Department of Justice continues to review cases involving NAR regarding explicit cooperation policies (including those imposed by defunct discount brokerage firm REX) that have generated much debate in the industry in recent months, and NAR The leadership team continues to consider what policies are in place. We are currently considering possible changes.
The Justice Department’s renewed focus on antitrust litigation could also impact major lawsuits against rental software maker RealPage and several major landlords, including Greystar Real Estate Partners, Blackstone’s LivCor, and Cushman & Wakefield. be. The lawsuit alleges that the companies engaged in a scheme to use RealPage’s rental pricing algorithms to reduce competition among landlords, harming renters and increasing rent prices for consumers.
One of the main themes that emerged during the confirmation hearings was the importance of restoring public trust in the Department of Justice and depoliticizing it, something that senators on both sides of the aisle pointed out repeatedly. was.
“My concern is that the weaponization of the Department of Justice is likely to occur during your term,” said Sen. Sheldon Whitehouse (D.R.I.).
Email Lillian Dickerson
