ACCC raises concerns over Realestate.com.au deal
The Australian Competition and Consumer Commission (ACCC) has raised concerns over Realestate.com.au’s proposed acquisition of Dynamic Methods.
Realestate.com.au is a wholly owned subsidiary of REA Group, the largest supplier of digital real estate advertising services in Australia.
Dynamic Methods operates the only national forms platform that enables real estate agents to access and use digital real estate forms, such as contracts for the sale and leasing of homes.
Given REA Group has acquired several companies to complement its services in recent years, the ACCC believes that buying Dynamic Methods will extend the group’s already strong position.
“Industry participants such as real estate service providers have expressed serious concerns to us about how the proposed acquisition will entrench REA Group’s position of strength in the supply of real estate services,” said ACCC commissioner Liza Carver.
The proposed acquisition may reduce competition in markets for the supply of digital real estate products and services, the ACCC elaborated. This includes real estate advertising services, digital real estate forms, real estate agency software solutions, and property data services.
The regulator also noted it was not notified of the proposed acquisition at first.
“This is yet another example of a potentially concerning merger not being notified to the ACCC under the current informal voluntary system. It highlights the importance of reforming Australia’s merger laws,” added Carver.
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