"The combined reach of Compass and Anywhere gives them outsized influence over market practices at a time when the brokerage industry is rapidly consolidating, the lawmakers wrote. The proposed Compass-Anywhere merger could substantially increase market concentration, possibly in violation of federal antitrust laws, and in a way that DOJ and FTC merger guidelines recognize could lead to anticompetitive harm. According to the senators, the merger would result in less competition in the brokerage space, lessening the pressure to lower broker fees."
"The Compass-Anywhere merger threatens to stifle consumer choice and fair industry competition while entrenching existing antitrust and price manipulation concerns that have been at the center of mounting litigation. These risks demand close scrutiny under federal antitrust laws, the senators wrote. In addition, the senators expressed concern over Compass's three-phased marketing strategy and its usage of a private listing network."
"By keeping listings inside their own networks, large brokerages like the one that would result from a merger of Compass and Anywhere block rivals from this necessary input, weakening smaller firms and making it harder for new entrants to compete on equal footing, they added. Compass announced its all-stock deal to acquire Anywhere in mid-September. The deal gave Anywhere an enterprise value of approximately $10 billion, including the assumption of its debt."
The combined reach of Compass and Anywhere could produce outsized influence over brokerage market practices amid rapid industry consolidation. The merger could substantially increase market concentration and potentially violate federal antitrust laws under DOJ and FTC merger guidelines. Senators cautioned that reduced competition would lessen pressure to lower broker fees and might stifle consumer choice and fair competition while entrenching antitrust and price-manipulation concerns central to ongoing litigation. Senators also highlighted Compass's three-phased marketing strategy and private listing network, which can block rivals from essential listings, weakening smaller firms and deterring new entrants. Compass maintained the deal is not anticompetitive.
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