subject: CREA and the Competition Bureau – Real Estate Back to Business as Usual [print this page] CREA and the Competition Bureau Real Estate Back to Business as Usual
Competition Bureau Goes After Rogers Communications for Misleading Advertising
Not a fortnight after resolving the alleged anti-competitive behaviour by the Canadian Real Estate association'sadministration of the MLS (Multiple Listing Service), the competition bureau has turned its teeth to Rogers Communication in a big way.The government agency, whose mandate is to ensure Canadian businesses and consumers prosper in a competitive and innovative marketplace, has levied a fine of $10 million on Rogers for misleading advertising.
The Bureau alleges that Rogers misled the consuming public by stating their discount wireless service Chat'rhas the fewest dropped calls than any other network'. Rival discount wireless provider Wind Mobile took umbrage and filed a complaint with the Bureau stating that carrier to carrier call transition is seamless and that advertising claims put forward in the Rogers campaign are baseless and misleading. The Bureau agreed andslapped theRogers with a $10 million fine. Wow!
The Canadian Real Estate Association (CREA)must be relieved to have the sharp-toothed watchdog off it's back, for now. The agreement reached on 28 October essentially allowed al a carte real estate services to be provided by realtors who utilize the MLS to market clients' properties. This 10 yearagreement avoided further (very expensive) court action toratify an agreement that was already in place, and has been for years. From what I can tell after two years,it all ended up a zero-sum game. Great for the lawyers and the six-figuresalaried civil servantsat the competition bureaubut not so muchfor everyone else.
Now don't get me wrong, I'm relieved that CREA is no longer in the competition bureaus petri-dish.
My question is where does the line get drawn between rewardingmarket efficiency and entrepreneurial success and punishing market dominance? An even more interesting question is how government employees (the anti-entrepreneur or socialist if you like) are deemed qualified to draw this line.
Feel free to post you comments if you feel I'm missing something here?
