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The Competition Bureau has appealed a ruling by the Competition Tribunal that dismissed the bureau’s complaint against the Toronto Real Estate Board (TREB).
“The bureau believes that the tribunal’s ruling was based on an overly narrow interpretation of section 79 of the Competition Act – the ‘abuse of dominance’ provision,” says the Competition Bureau in a news release. “The tribunal ruled that TREB, as an incorporated trade association, does not compete with its own members in the real estate brokerage market and therefore cannot be found to have contravened the abuse of dominance provision,” says the bureau.
“Allowing the tribunal’s finding to stand could leave a significant loophole in the application of the Competition Act,” says interim commissioner of competition John Pecman in the release. “While most trade associations comply with the Competition Act, we are concerned that, if the tribunal’s decision is left to stand, trade associations may be tempted to develop rules aimed at preventing or eliminating potential new forms of competition.”
Pecman says: “We believe that the Competition Tribunal erred in dismissing our application and in not ruling on the facts of the case. It is our view that TREB’s anti-competitive behaviour continues to restrict potential homebuyers and sellers from taking advantage of a greater range of service and pricing options when making one of the most significant financial transactions of their lives.”
In the appeal, the bureau is asking that the court:
– Set aside the order of the tribunal dismissing the application;
– Order that the matter be returned to the tribunal “for a determination of the commissioner’s application in accordance with this court’s reasons;”
– “Set aside the tribunal’s order for costs and order that costs be determined by the tribunal on it determination of the application'”
– “Order that TREB pay to the commissioner his costs of this appeal;” and
– “Grant such further and other relief to the commissioner as the court may deem just.”
REM