Anti Trust Issues Not Exclusive To U.S.

A discount broker in Canada has shut down operations pending resolution of Multiple Listing service issues. It seems that the Canadian Association of Realtors is considering imposition of new rules that would limit Realty Sellers Ltd. from operating it's discount business model. A visit to their site shows only their logo.

It's the classic argument that has been taking place in markets throughout the U.S. between full service and so called "discount" brokers. The only twist in this instance seems to be CREA's assertion that their is some sort of trademark violation taking place. Here's a pull quote from an article in the GlobeandMail.Com

"The issue came to a head earlier this year when CREA's board announced a series of changes that it said were designed to protect the MLS trademark. The proposals included requirements that agents inspect homes before listing them on the MLS and work with other agents throughout the sale process."

I'm not sure how the trademark violation issue comes into play if the discount broker is a board member, which in this case Realty Sellers, LTD is. I wonder how it would play down here if the MLS' started requiring agents to inspect properties before they take a listing agreement?

The Canadian equivalent to the FTC is called the Competition Bureau. According to the article they have expressed concerns over the new MLS rule proposals as well. I wonder if they will take a cue from the recent opinion released by the DOJ regarding similar issues here in the States?

In the Houston,TX area, "discount" brokers and full service brokers have coexisted in the MLS for some time now. From what I can see it hasn't had a impact on the ability for traditional brokers to flourish. Most of the major brokers in this area are posting record increases in business. I'm not sure what kind of market share discounters have in the area but I haven't heard of any of them complaining that they are being hampered by anti-competitive tactics.

Free enterprise is alive and well on the Gulf Coast.