Canadian MLS dispute unresolved

Settlement talks between Canadian Realtors and regulators over the rules governing Canada's national Multiple Listing Service (MLS) system have broken down, parties in the dispute said.

The Competition Bureau of Canada says it will file a formal challenge of rules imposed by the Canadian Real Estate Association (CREA) that the Bureau says restrict competition -- including prohibitions against real estate agents offering consumers the option to pay a flat fee to list their home on the national MLS system.

Consumers are required to purchase a predetermined set of additional services from a real estate agent, the Bureau said, such as the presentation of offers and negotiation of a final deal.

The Bureau intends to take its case to the Competition Tribunal, a six-member, quasi-judicial body that decides disputes over issues including mergers, misleading advertising and restrictive trade practices.

"The Bureau is focused on striking down these anti-competitive rules, so that real estate agents wishing to offer innovative services can do so, and consumers can benefit from greater choice," said Melanie Aitken, Canada's Commissioner of Competition, in a press release.

"While the market will ultimately determine prices for residential real estate services, we expect that if the Tribunal strikes down the anti-competitive restrictions, there will be downward pressure on real estate fees in Canada," Aitken said.

CREA -- Canada's version of the National Association of Realtors -- issued a statement saying that it was "very disappointing" that several months of settlement negotiations ended without an agreement. ...CONTINUED

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