The Canadian Real Estate Assocation (CREA) filed its defense on March 25 against charges by the Canadian Competition Bureau that the Canadian MLS system stifles competition in the real estate industry.

CREA argues in its response to the CC Board that the industry is already very competitive, and that there are a variety of buying and selling options already available to the Canadian public. They also argue that recent changes adopted by CREA open up the MLS system to direct listing by sellers.

CREA announced rule changes earlier this month that make it possible for home sellers to be listed on the MLS system for a flat fee, rather than for a commission to be paid to the listing agent. CREA argues this essentially gives the Competition Bureau what they are after.

All indications are that the Competition Bureau is going ahead with its case against CREA, which is likely to be heard by a tribunal in the fall.

Some observers think that Melanie Aitken, the new Commissioner of the Competition Bureau is using this as a test case to show she is prepared to take on large and powerful organizations.

The MLS rule changes approved by CREA must be adopted and implemented at the local board level. So it is possible they will vary from board to board across the country.

Resource: Globe and Mail Report on Business, Mar 27, 2010