DOJ vs. MLS of Hilton Head Island Inc.

The U.S. Department of Justice today announced that it has reached a settlement agreement with the Multiple Listing Service of Hilton Head Island Inc. over MLS policies that the DOJ alleged are in violation of federal antitrust law (see Inman News).

The proposed settlement, which requires the MLS to change its rules that are challenged by the DOJ, is subject to a 60-day written comment period and court approval. The Justice Department also announced that it has also filed a civil antitrust lawsuit against the MLS in conjunction with the proposed settlement -- approval of that settlement will resolve that complaint. The lawsuit allges that MLS rules unreasonably:

• raise entry barriers for potential competitors by imposing burdensome prerequisites for membership;
• provide a means of identifying potentially aggressive competitors so they can be excluded from membership;
• stabilize the price of brokerage services through the prospect of price controls;
• deter the emergence of Internet-based brokerages;
• stabilize the price of, and reduce consumer options for, brokerage services by dictating the services that all brokers must provide;
• and discourage entry of potential competitors who raise funds through public ownership.

An MLS official acknowledged that a settlement agreement had been reached while denying any wrongdoing by the MLS. About 215 brokerages and 1,800 sales agents are a part of the MLS.

Earlier this month, the DOJ launched a Web site that details competitive issues in the real estate industry (see this Inman Blog post).

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