Watchdog confirms price-fixing appeal

The Commerce Commission has confirmed it will appeal the High Court’s decision to dismiss pricefixing charges against two real estate agencies and their directors.

Lodge Real Estate and Monarch Real Estate, were the only two of 13 firms around the country accused of price-fixing that chose to fight the accusations.

The High Court in Auckland sided with them last month.

The Commerce Commission first took action against the real estate agencies, when, after Trade Me put up its prices in 2013, they met to discuss a plan.

They agreed to put their listings on Realestate.co.nz instead and to charge vendors who wanted Trade Me listings.

While 11 firms settled and paid nearly $20 million in penalties, Lodge and Monarch refused.

They argued that, when they met to discuss strategies, they were trying to protect vendors from the added costs.

The agencies maintained that any discussion concerning the change in the pricing structure proposed by the sales listing site was not in breach of the Commerce Act. They said the decision to not absorb the new Trade Me fee was the result of their economic ability to carry what for some agencies would be a more than a 3500 per cent price increase.

Commission chairman Dr Mark Berry said the High Court judgment raised significant legal issues that merit an appeal in this case.

He said the commission was unable to comment further.