"In late December, the DOJ filed a statement of interest in the Davis homebuyer commission lawsuit, which was filed in May 2024 against Howard Hanna Real Estate Services. In the filing, which was signed by Assistant Attorney General Gail Slater, the DOJ urged the court to take a closer look at agent commissions, arguing that they are still possibly inflated due to unreasonable trade group rules that the department feels are inherently unlawful."
"While the DOJ did not opine on what the outcome of the lawsuit should be, it does address what it views as erroneous claims made by Howard Hanna in its motion to dismiss the lawsuit. In the motion, the brokerage defendant claims that the allegations of conspiracy cannot be substantiated because it centers on rules and conversations within Realtor associations, which they argue provide pro-competitive benefits for members and protect consumers' homeownership rights."
"In the statement of interest, the DOJ pushes back against this arguing that policies, even those promulgated by a trade association, can constitute concerted action and violate antitrust laws. As a result of this, despite Howard Hanna requesting that the judge apply the rule of reason in this lawsuit, which considers the pro-competitive effects of the rule along with any anticompetitive effects, the DOJ claims that a per se analysis, which assumes that the rule is inherently anticompetitive on face value."
The DOJ filed a statement of interest in the Davis homebuyer commission lawsuit against Howard Hanna, urging judicial scrutiny of agent commission practices. The filing, signed by Assistant Attorney General Gail Slater, asserts commissions may remain inflated by trade group rules the DOJ deems inherently unlawful. The DOJ did not recommend a case outcome but challenged Howard Hanna's motion to dismiss, arguing that trade association policies can be concerted action violating antitrust law. Howard Hanna urged application of the rule of reason; the DOJ argued a per se analysis may be warranted. Industry actors expressed surprise, while experts said the action aligns with administration priorities.
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