For more than a century, federal antitrust laws have existed as a way to promote competition and prevent monopolies in business. Because real estate brokers and salespeople frequently cooperate with one another in the sale of properties, they have numerous opportunities to engage in conduct that might be construed as violations of antitrust laws. the United States Supreme Court has held that antitrust laws also apply to the real estate industry. In a landmark case in 1950, the Supreme Court decided that? mandatory fee schedules established and enforced by a real estate board violated the Sherman Act. Long ago, the Supreme Court decided that the Sherman Act does not prohibit every restraint of trade, only those that are unreasonable. For instance, in some sense, an agreement between two individuals to form a partnership restrains trade, but may not do so unreasonably, and thus may be lawful under the antitrust laws. Competition law Wikipedia The court also rejected the claim that real estate brokerage is a profession and not a trade and therefore exempt. The professional exemption has also largely disappeared, due to U. Supreme Court cases holding that the professions of law and engineering are not exempt from antitrust laws. That should not, however, be the response. Realestate associations with even a modicum of antitrust counseling would never suggest a commission, and a broker should not suggest that prices are set collectively in any way. You can read our article about how the antitrust laws do not allow real estate brokers to fix or set prices or commissions. Antitrust laws dont prohibit a company from controlling a large share of the market if they do it by innocent means. What antitrust laws prohibit are acts intended to form a. Antitrust laws do NOT prohibit real estate A) salespersons within the same office agreeing on a standard commission rate. B) companies agreeing on fees charged to sellers. C) companies allocating markets based on the location of commercial buildings. D) brokers allocating markets based on. That will sometimes happen in a market; there is a rate that is around the market rate and most will price around that rate. We wrote a prior article about this situation, where real estate commissions ended up at the same level, but not due to any agreement. This was not an antitrust violation. Clayton Antitrust Act Investopedia The Big Three Antitrust Laws. The Federal Trade Commission Act bans unfair methods of competition and unfair or deceptive acts or practices. According to the Supreme Court, violations of the Sherman Act also violate the Federal Trade Commission Act. Therefore, even though the Federal Trade Commission cannot technically enforce the Sherman Act. Antitrust Violations Wex Legal Dictionary Encyclopedia. Sherman antitrust laws prohibit price fixing, group boycotting, the allocation of customers or markets, and tiein agreements. This means that competing brokers, real estate governing bodies, or multiple listing organizations cannot agree to set sale conditions, fees, or management rates. A commission split that differs from what is offered in the MLS to all companies generally may be referred to as a punitive split. However, as long as these commission splits are determined and offered unilaterally and not in agreement with other firms, antitrust laws do not prohibit. Antitrust Laws LegalMatch Law Library Government laws designed to improve market efficiency, encourage competition, and curtail unfair trade practices by reducing barriers to entry, breaking up monopolies, and preventing conspiracies to restrict production or raise prices in the real estate industry.