This was by taking part in a price-fixing cartel, where members set minimum levels of commission fees for the sale of residential properties.
The Competition and Markets Authority (CMA) haspointed the finger atfour Berkshire estate agents, Michael Hardy, Prospect, Richard Worth and Romans, for apparently breakingcompetition law.
This was by taking part in a price-fixing cartel, where members set minimum levels of commission fees for the sale of residential properties. The alleged cartel took place in the Berkshire area from at least September 2008 and lasted foralmost seven years.
Howard Cartlidge, senior director, Cartels, said: “Everyone knows selling your home is expensive. So, it’s important that people should be able to shop around all of their local estate agents to make sure they are getting the best possible deal.
“Estate agents who conspire to set minimum commission rates are cheating homeowners and breaking the law. Where we find evidence that this is happening, we will not hesitate to take action to protect people selling their home.”
The result of such price-fixing is that homeowners may be denied the chance of securing the best possible deal when selling their properties, as they are unable to shop around all of their local agents for better rates.
In a Statement of Objections issued today, the CMA has provisionally found that the four estate agents agreed that they would all apply minimum commission rates for residential property sales and exchanged confidential pricing information.
It also found theyheld meetings and colluded to make sure that they were all enforcing and maintaining the agreed minimum commission rates.
Today’s findings are provisional. The companies now have the opportunity to consider the detail of the CMA’s provisional findings and respond to it. The CMA said it will carefully consider any responses before any final decision is made.
Tackling cartels is a fundamental part of the CMA’s work, and this is the third case brought against estate agents in recent years.
Previous actions include finingfour estate agents in Somerset over £370,000for colluding to set minimum commission rates, and chargingthree members of the Three Counties Estate Agent Association £735,000for breaking competition law in relation to estate agent and letting fees.
The CMA also has an ongoingStop Cartelscampaign, which aims to educate business about which practices break the law and urges people to come forward if they suspect a company has taken part in cartel behaviour, such as fixing prices or rigging contracts.
The campaign explains what anti-competitive behaviours are, why they are illegal, the impact they have on customers and the economy, and why they should be reported.
