The Department of Justice's Antitrust Division has filed a statement of interest in the U.S. District Court for the Eastern District of Pennsylvania regarding the case Davis et al. v. Hanna Holdings Inc. The lawsuit, initiated by homebuyers, accuses real estate brokerages and their trade association, the National Association of Realtors, of forming anticompetitive agreements that have allegedly led to inflated broker commissions and higher home prices.
The statement from the Justice Department emphasizes the importance of competition among real estate brokerages to protect American homebuyers. It also clarifies that rules set by trade associations are subject to scrutiny under antitrust laws.
“Purchasing a home is the single biggest purchase most Americans make in a lifetime,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “Today’s soaring housing prices make competition in real estate brokerage more important than ever. Antitrust laws are key to safeguarding competition, which reduces prices and improves services for homebuyers.”
According to data referenced by the department, Americans spend roughly one-third of their budgets on housing and related costs. Despite this significant expenditure, real estate broker commissions in the United States have stayed between 5% and 6% for decades—levels two to three times higher than those found in other developed countries. The department notes that any trade association rules that contribute to higher commissions should be closely examined under antitrust regulations.
U.S. courts have previously determined that trade associations may violate antitrust laws if they unreasonably limit competition among members. While not taking a position on how this specific case should be resolved, the department’s statement explains that when competitors agree not to compete—regardless of how such agreements are structured—antitrust law provides remedies for consumers affected by these practices. Rules created by trade associations can be challenged under Section 1 of the Sherman Act and are not automatically exempt from restrictions against horizontal price fixing.
The Antitrust Division regularly files statements of interest and amicus briefs in federal court cases where its involvement supports competition and consumer protection, as well as promotes consistent application of antitrust law.
