Competition Bureau says Quebec real estate board violated abuse of dominance rules

The Competition Bureau says it has reached a settlement with Quebec’s real estate industry association to loosen data-sharing restrictions that violated the Competition Act.

The watchdog said the Quebec Professional Association of Real Estate Brokers and its subsidiary, Société Centris, broke abuse of dominance rules by refusing to provide members with a real estate data feed, while also restricting how such data could be used.

The bureau said lack of access to that data was likely meant to “impede innovation and limit competition in the real estate brokerage services market.”

As part of a consent agreement reached with the association, it will now provide its members with a real estate data feed containing information about sale prices, listing history and property characteristics.

The bureau said data feeds could help real estate brokers create property comparison tools, market valuation or data visualization services, along with platforms offering consumers more detailed information.

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“Real estate data is crucial to some of the most important decisions Quebecers make when purchasing a property,” said Jeanne Pratt, interim commissioner of competition, in a statement.

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“This agreement will promote innovation, enhance competition, and help consumers make informed choices by providing more complete access to this data.”

In a news release, QPAREB said it would implement all measures outlined in the settlement over the next year.

It said the agreement ensures that real estate agencies will have automated access to the data. Agencies would then be able to provide that data to clients, typically via a secure website.

“It is the result of several years of efforts so that the QPAREB can implement a solution tailored to the Quebec reality, especially given that Quebec’s laws are more restrictive than those in the rest of Canada, particularly with regard to the protection of personal information,” said Pierre-Olivier Simard, president of the QPAREB board of directors, in a statement.

The bureau launched its investigation into QPAREB’s data-sharing practices in 2023. It previously obtained a Federal Court order requiring the association to hand over information related to the effects of its restrictions and the reasons for them.

The watchdog has been keen in recent years to ensure that limited public access to real estate data doesn’t contribute to market dominance or ward off innovation within the sector.

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During a previous case against the Toronto Regional Real Estate Board, the bureau challenged rules that prevented brokers in that region from sharing certain real estate data with their clients through secure online platforms.

It had claimed TRREB’s grip on multiple listing service (MLS) data was so tight it constituted anticompetitive behaviour. The bureau sought to make the data publicly accessible on brokers’ websites, but TRREB fought back, claiming the publication of such data posed privacy and copyright concerns.

The Competition Tribunal, and later the Federal Court of Appeal, sided with the bureau, before the Supreme Court of Canada refused to hear the case in 2018.

The Supreme Court’s refusal cleared the way for MLS data to appear on other websites, which must be password-protected and are typically open to an agent’s clients or site subscribers.

The bureau used some documents related to its fight with TRREB in its application seeking information from QPAREB.