When the Internet starting cutting into the profits of traditional realtors, they responded by excluding listings on other brokers' Web sites. That invited scrutiny from the Justice Department toward the National Association of Realtors, which ended in an antitrust lawsuit.
Today the NAR agreed to change its policy concerning Web listings, and will allow access to discount brokers. In order to hold on to their traditional business model, real estate brokers hadn't allowed other brokers to offer up their listings; especially those offering discounts.
Speaking for the Justice Department, Deborah Garza, deputy assistant attorney general in the antitrust division said, "Today's settlement prevents traditional brokers from deliberately impeding competition. When there is unfettered competition from brokers with innovative and efficient approaches to the residential real estate market, consumers are likely to receive better services and pay lower commission rates."
While I completely agree with the thinking proffered by Garza, we need to take this attitude toward all the industries in America, and even across the world, as it would initiate a tremendous value to consumers, as competition without restrictions would result in great advances everywhere.
It's the fear of competition and others doing it better that results in protected markets and mediocrity. That's always a losing proposition for consumers, no matter where in the world it's practiced.
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