Realtors sued over Internet MLS data exchange policy

The Department of Justice (DOJ) amended its complaint in its Anti-Trust lawsuit against the National Association of Realtors (NAR), proposed policy for the display of MLS listing data on Internet websites. The DOJ’s complaint is that NAR’s proposed MLS data exchange policy would stifle competition by limiting access to information about properties for sale.

What’s at stake is the traditional "brick and mortar" brokerages control of the information within the Realtor owned and operated Multiple Listing Services (MLSs) around the country. The NAR policy would allow these brokers to "opt-out" of providing their properties listed in the MLS from appearing on the websites of their Internet competitors. It also would deny membership to MLSs for company’s with alternative Internet based business models.

Apparently a last minute modification of the proposed policy by NAR was too little, too late to avert the lawsuit. After three years of talks between the U.S. Justice department and and the NAR, the nations largest trade group with over 1.2 million members, the DOJ was forced to initiate a lawsuit to protect consumers against anti-competitive measures. The new MLS data exchange policies would have protected traditional brokerages right to a full commission by disallowing alternative competitors the right to display the data of all of the broker members of the MLS on their websites.

According to the DOJ complaint, "NAR’s modified policy, like its original policy, denies brokers using new technologies and business models the same benefits of MLS membership available to their competitor brokers, suppresses innovation, discourages competition on price and quality, and prevents new, efficient competitors from entering the marketplace - all to the detriment of consumers."

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