The Australian Competition and Consumer Commission (ACCC) has voiced initial competition apprehensions regarding realestate.com.au’s intention to acquire Dynamic Methods, as revealed in a statement of issues released today.
This proposed acquisition by realestate.com.au‘s parent company, REA Group, has drawn attention from the ACCC, particularly due to concerns over potential impacts on competition within the digital real estate services market.
REA Group, a major player in digital real estate advertising services, has been expanding its suite of services through acquisitions in recent years. Dynamic Methods, the target of this proposed acquisition, operates a national forms platform crucial for real estate agents to access and utilize digital real estate forms.
According to ACCC Commissioner Liza Carver, the lack of notification about this merger highlights existing issues in Australia’s merger laws and emphasizes the need for reforms in the notification system.
The ACCC is apprehensive about the potential consequences of this acquisition, fearing it could further solidify REA Group’s dominant position in the digital real estate market. Industry stakeholders have expressed concerns about the potential for REA Group to control access to vital digital forms, essential for real estate-related services.
The proposed acquisition’s impact on competition in various digital real estate product and service markets, including advertising services, digital forms, agency software solutions, and property data services, is under scrutiny by the ACCC.
Stakeholders and interested parties are invited to provide submissions on these concerns until March 1, 2024, as outlined in the statement of issues available on the ACCC’s public register.
Background:
- realestate.com.au is a subsidiary of REA Group, a provider of digital advertising services for residential and commercial real estate.
- Dynamic Methods offers a digital forms platform for real estate agents, excluding Victoria, where it supplies forms directly.
- REA Group’s diverse portfolio includes mortgage broking, lending, property data and valuation services, and more, through various subsidiaries and investments.
