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onsumer Pam Tindill was shocked by the high online advertising costs when she sold her home in May. The cost to advertise a property for sale in Australia is now higher than almost anywhere else in the world, with one dominant player, REA Group, reaping most of the online advertising fees. Ms Tindill paid her real estate agent almost $5,880 for marketing her unit, with a big chunk ($3,289) going to listing the property on REA's website.

    The Australian Competition and Consumer Commission (ACCC) is probing REA Group over price gouging concerns after years of complaints that the company is using its dominant position to the detriment of consumers. While the cost of providing a home listing online is low, REA has established itself as the number one site to list on and can hike up its listing prices nearly every year.

    REA's business model will come under scrutiny from the ACCC, with former chair Allan Fels saying price rises seem "extraordinary" at a time when housing affordability is a key problem for millions of Australians. REA has amassed power in Australia's lucrative real estate market by investing heavily and taking over other businesses that hold valuable data on consumer habits.

    Real estate agents fear it won't be long until REA starts charging them fees for leads on buyers and sellers, with some speculating the company may one day operate as a mega agency that could wipe out smaller independent agents. Agents say they have to pass on the listing cost charged by REA to consumers because it's a cost of doing business.

    REA charges real estate agents in two main ways: through listing costs, which can be thousands of dollars depending on the geographic area, and subscription fees, which are rising from July 1 in some cases by almost 80 per cent. Agents say they have limited bargaining power with REA due to its market dominance.

    The ACCC investigation into REA Group is ongoing, but it could take months or more than a year for findings to be handed down. In the meantime, REA continues to cement its dominance and grow revenue from agents through various investments in the real estate industry.

    REA's spokesman says the company has no plans to charge for leads, but some agents speculate that this may happen soon. The ACCC is being urged to run a "ruler" over REA to ensure there's no unlawful anti-competitive behaviour, with Professor Allan Fels saying price gouging itself is not illegal but could be part of a broader issue of market power and data collection.