ACCC probe News Corp’s REA Group over pricing concerns
The REA Group is under investigation by the Australian competition watchdog over its pricing model.
REA Group runs Australia’s biggest property sales platform, realestate.com.au, which is visited by 12.3 million users each month. The $32 billion listed company — which controlled by News Corp — confirmed in an ASX announcement that it is “providing information on certain subscription offerings” to the ACCC.
Realestate.com.au charges real estate agents a subscription fee — for example $59/month per agent for the base plan — with many listings charged on top of that. Prices for featured listings in expensive suburbs can range up to $5000.
REA also operates a commercial listings site, realcommercial.com.au, comparison site Mortgage Choice, and property insight hub PropTrack.
It’s nearest competitor in the market, Nine’s Domain, recently entered into a binding agreement with US real estate giant Costar, which valued the company at $3 billion.
The Financial Review first reported the Australian Competition and Consumer Commission has been meeting with industry bodies and real estate agencies over allegations of price gouging on REA Group’s real estate platforms.
In the ASX filing made on Tuesday afternoon, REA “notes speculation regarding an investigation being undertaken” and confirms it received a notice from the ACCC “requiring REA to provide information regarding certain subscription offerings.”
The notice read: “REA is committed to providing choice, value and flexibility to its customers and consumers, and remains focussed on delivering products and services that improve the property experience of buyers, sellers and renters.”
REA said it is “cooperating fully with the ACCC and is unable to comment further for confidentiality reasons. REA will continue to comply with its disclosure obligations and will update the market on this matter as appropriate.”
Mumbrella reached out to the ACCC for comment, and it replied that it does not comment on potential investigations.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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