Robert Reffkin and Rebecca Jensen you got mail! The House Judiciary’s antitrust subcommittee sent both CEOs letters asking for briefings on the Compass/MRED partnership, “as soon as possible” and no later than August 5. The concern, straight from the letters, is that the deal:
Judiciary subcommittee summons Compass, MRED CEOs for briefing
“could limit competition by fragmenting inventory, weakening price competition, and creating “velvet ropes” around certain properties that limit access to a select group of potential buyers, potentially limiting consumer choice”
“Velvet ropes.” On congressional letterhead. That phrasing sounds familar, and apparently Washington has been taking notes.
Now walk with me…. The Consumer Federation of America asks the DOJ and FTC to review Compass’s MLS agreements. Senators Warren and Wyden want scrutiny of the Anywhere deal. The New York AG opens an antitrust inquiry. Zillow drags everybody into federal court in Chicago. And now a House Judiciary subcommittee wants both CEOs in the room within two weeks. Here’s the part that should get Compass’s attention: this subcommittee is chaired by Scott Fitzgerald, a Republican from Wisconsin. Warren and Wyden are one thing. When the letters start coming from both sides of the aisle, “this is just politics” stops working as a talking point.
MRED’s response: “Whether it’s our customers or this committee, we’re always happy to help.” Never change, Rebecca.
Compass? Nothing yet. The guy who personally emails MLS CEOs across the country didn’t have a comment ready.
Nobody got subpoenaed. A briefing is the meeting you take so you don’t get the hearing or the subpoena.
Compass’ FAFO moment might be about to happen and something tells me saying “seller’s choice” a hundred times isn’t going to work.
