The Australian Competition and Consumer Commission (ACCC) has raised preliminary competition concerns over the proposed acquisition of Dynamic Methods by REA Group, which operates realestate.com.au.

REA Group, the largest supplier of digital real estate advertising services in Australia, is looking to acquire Dynamic Methods, the operator of the only national forms platform that enables real estate agents to access and use digital real estate forms. The ACCC has expressed concerns the acquisition may extend REA Group’s already strong position and give it the ability and incentive to significantly harm competitors. The regulatory watchdog was not initially notified of the proposed acquisition and only began a public review once it became aware of the deal.

“This is yet another example of a potentially concerning merger not being notified to the ACCC under the current informal voluntary system. It highlights the importance of reforming Australia’s merger laws,” said ACCC Commissioner Liza Carver.

The ACCC is also worried REA Group will have the ability to control access to, and data from, digital forms which are necessary for providing real estate related services.

“Many are concerned that REA Group, which operates realestate.com.au, will have the ability to control access to, and data from, digital forms which are necessary for providing real estate related services,” Carver added.

The ACCC is considering the impact of the proposed acquisition and the extent to which owning the largest supplier of digital real estate forms may further advantage REA Group’s ecosystem of real estate businesses and harm competition.

“We are concerned that by expanding REA Group’s existing ecosystem of products and services, this acquisition may extend REA Group’s already strong position and give it the ability and incentive to significantly harm competitors,” Carver stated.

Industry participants such as real estate service providers have expressed serious concerns to the ACCC about how the proposed acquisition will entrench REA Group’s position of strength in the supply of real estate services.

“Industry participants such as real estate service providers have expressed serious concerns to us about how the proposed acquisition will entrench REA Group’s position of strength in the supply of real estate services,” Carver noted.

The ACCC has invited submissions in response to the statement of issues by 1 March 2024. Realestate.com.au is a wholly owned subsidiary of REA Group. Dynamic Methods provides a digital forms platform to distribute and facilitate the use of real estate institutes’ digital real estate forms by real estate agents in all states and territories except Victoria.