REA Group removes contract restrictions for 3 years
- REA Group agreed to remove exclusive listing terms from its real estate agency contracts.
- Following the regulatory resolution, shares in REA Group were trading lower at $154.42.
- The 3-year undertaking aims to increase listing options and portal competition for property vendors.
REA Group (ASX:REA) agreed to remove anti-competitive agent contract restrictions for 3 years following regulator concerns.
Previously, most agency contracts locked real estate businesses into listing all properties exclusively on realestate.com.au.
“REA’s undertaking resolves this issue in a timely manner and addresses our concerns,” said ACCC Chair Gina Cass-Gottlieb.
The company committed to alter its commercial practices without requiring agencies to list premium higher-fee features.
Following the announcement the REA Group share price was down at $154.42.
REA Group operates realestate.com.au, which functions as Australia's largest residential property listing website.
The regulator stated that it will prioritise investigating agreements containing provisions that hinder market competition.
