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recent statement from the Department of Justice (DOJ) has significant implications for real estate professionals, particularly those involved with trade associations and multiple listing services (MLSs). The DOJ filed a statement of interest in an antitrust case involving the pork industry, which highlights the risks associated with sharing information among competitors.
Key points:
* Sharing data only among competitors can raise antitrust concerns.
* AI has made it easier to analyze data, increasing the risk of price-fixing.
* MLSs and associations must ensure they're not inadvertently facilitating price-fixing arrangements.
The DOJ's statement emphasizes that when competitors share competitively sensitive information, it suggests that the information sharing will benefit only the competitors at the expense of consumers or other market participants. This is particularly relevant in today's data-driven environment, where AI has made it easier to analyze and share information.
Real estate organizations must be cautious about collecting and sharing data on actual transactions, as this can potentially facilitate price-fixing arrangements. The key is how that data is used, and whether competitors are keeping it to themselves. For example, if a database contains recent and active data on broker commissions and parties involved, sharing it with competing companies could raise serious concerns.
While the industry's relatively low-tech business practices may be its saving grace, this won't last forever. As technology continues to evolve, real estate professionals must stay vigilant and ensure they're not inadvertently creating situations that enable price-fixing.
