Congress Investigates Compass-MRED Private Listings Deal

A congressional subcommittee is investigating a partnership between real estate brokerage Compass and the Midwest Real Estate Data (MRED) multiple listing service, focusing on whether their deal for distributing Compass' private listings nationwide is anticompetitive. The House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust sent letters this week to Compass CEO Robert Reffkin and MRED CEO Rebecca Jensen requesting a briefing on their business practices.

This inquiry follows an April announcement where Compass and MRED, the MLS for the Chicago area, revealed a plan to distribute Compass Private Exclusives listings nationally through the MRED database. Historically, MRED has operated solely as a regional service. The letters, sent by Rep. Scott Fitzgerald (R-WI), chair of the subcommittee, state that the panel is examining if this partnership could constitute anticompetitive conduct. Fitzgerald expressed concerns that the expansion of Private Listing Networks (PLNs) generally could impact consumer access to information and housing affordability.

Furthermore, the committee seeks to ascertain if the Compass-MRED partnership might "incentivize brokers to push sellers into private listings." Representative Fitzgerald articulated worries that PLNs could promote "dual-agency" transactions, where a single agent represents both the buyer and the seller. He noted that dual agency can create conflicts of interest and limit a buyer's access to independent representation.

The subcommittee has requested a response from Compass and MRED by early August, in anticipation of a hearing to be scheduled later. MRED has stated its intention to cooperate with the inquiry, with a spokesperson indicating they look forward to helping the committee understand their business practices.