Bondi affirmed that the enforcement of antitrust laws would be a “priority” for her as Attorney General, which suggests that the real estate industry should be prepared for investigations into its practices to continue in full force.
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Pam Bondi was grilled by U.S. senators on Wednesday and Thursday of her Senate confirmation hearings to become the next U.S. Attorney General, addressing a variety of lawmakers’ concerns from revitalizing the U.S. Department of Justice’s (DOJ) public image to how she would handle requests from President Trump and more.
Senator Chuck Grassley, R-Iowa, quizzed Bondi on how she would enforce antitrust laws in order to best protect consumers, a subject that has been top-of-mind for many real estate professionals over the past few years as the DOJ has nailed big players like the National Association of Realtors (NAR) and RealPage for practices that it deems anticompetitive in nature.
“Enforcing antitrust laws is extremely important to ensure that markets are fair and that consumers are protected,” Sen. Grassley said on Wednesday. “I’ve been active in making sure that the Justice Department and the [Federal Trade Commission] carefully scrutinize mergers and that they look out for anti-competitive behavior and predatory practices. I keep a close eye on these issues as they impact my state of Iowa and particularly agriculture, healthcare and technology industries, and I’m interested in your commitment to make antitrust enforcement a priority.”
Bondi affirmed that she would be committed to upholding antitrust laws as Attorney General.
“Antitrust enforcement was a priority when I was a state AG and it will be a priority if I am confirmed as Attorney General,” Bondi said. “And again, I am so proud to have Gail Slater handling that; she is loved by both sides.”
Slater, who previously worked at the FTC, was nominated in December by President Trump to lead the DOJ’s antitrust division.
With the commission lawsuits settlement, NAR and other major companies in the industry addressed some of the DOJ’s concerns about industry practices, including increasing transparency around how agents are paid with new contracts and abolishing cooperative compensation, whereby homesellers agree to pay a commission to their seller’s agent, which is then shared with the agent who brings a buyer to the transaction.
Still, the industry continues to remain firmly within the DOJ’s gaze. With Slater and Bondi asserting their commitment to scrutinizing antitrust practices, real estate should be prepared for investigations into the industry to continue.
On Monday, the Supreme Court denied NAR’s appeal request in its case with the DOJ, which means that the DOJ can reopen its investigation into NAR’s commission and pocket listing rules. The DOJ has suggested that the Sitzer | Burnett settlement did not go far enough and that listing brokers and sellers should not be able to make pre-emptive offers of compensation to buyer brokers at all — even outside of the MLS.
Likewise, the DOJ has continued to weigh in on cases NAR is involved in regarding the Clear Cooperation Policy (including one levied by defunct discount brokerage REX), which has spurred a great deal of debate in the industry in recent months and which NAR’s leadership team is evaluating for possible changes.
A renewed commitment to antitrust litigation by the DOJ also may impact a significant lawsuit against rental software maker RealPage and several major landlords, including Greystar Real Estate Partners, Blackstone’s LivCor, and Cushman & Wakefield. The lawsuit alleges the companies engaged in a scheme to decrease competition between landlords by using RealPage’s rental pricing algorithm, which it claims harmed renters and resulted in elevated rent prices for consumers.
One of the main themes to come out of the confirmation hearings was the importance of restoring public trust in the DOJ and depoliticizing the department, a point made multiple times by senators on both sides of the aisle.
“The concern is that weaponization of the Justice Department may well occur under your tenure,” Senator Sheldon Whitehouse, D-R.I., said.