Canadian Lawyer

May 2010

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REAL ESTATE that if you have conduct engaged in by a dominant firm that is predatory, exclu- sionary, disciplinary vis-a-vis competi- tors, that type of conduct can fit in under the provisions, which is one of the reasons that the commissioner has expressed an interest in forcing them quite aggressively because the provisions can catch a poten- tially broad range of conduct." Ultimately, the bureau will have to show that CREA's dominance of the industry through its control of MLS has substantially lessened competition, he says. In its application, the bureau argues that MLS restrictions "have virtually eliminated suppliers of fee-for-service real estate brokerage services in Canada and have foreclosed entry by potential sup- pliers of these services." It states "flat fee MLS" services and fee structures offered in the U.S. that have accelerated with the spread of the Internet offer greater choice Subscribe today to Canadian Lawyer Canadian Lawyer is the ultimate source for today's legal professional. Keep up to date and informed by subscribing today for only $65 a year! Along with 11 issues packed with insights, trends and analysis, you'll also receive access to Canadian Lawyer's exclusive digital edition and digital edi- tion archives, available only to regis- tered subscribers. You'll stay up to date on breaking news between issues with Canadian Legal Newswire, our free weekly enewsletter that is edited by our legal reporting team. Paying it f orward o S t . 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RIDING THE PACIFIC WAVE P.30 grinding wheels The he of justice sti bl ame fo orr ch ic Subscribe online at canadianlawyermag.com ❑ Send me 1 year of Canadian Lawyer for only $65.00 (Total with GST: $68.25) ❑ Send me 2 years of Canadian Lawyer for only $130.00 (Total with GST: $136.50) Name: _________________________________________________________________ Company: ______________________________________________________________ Address: ________________________________________________________________ City: _______________________ Prov: ______________ Postal Code: _______________ Tel: ( ) _______________________ Fax: ( ) ______________________ Email: __________________________________________________________________ ❑ Payment enclosed ❑ Charge my: ❑ Visa ❑ Mastercard ❑ American Express Card #: __________________________________ Expiry Date: ___ / ___ (mm/yy) Signature (required): ______________________________________ Date: _______________ 240 Edward St. Aurora, ON. L4G 3S9 Tel: (905) 727-0077 Fax: (905) 727-0017 Mail or fax this form to Canadian Lawyer CL_fullpageSUB.indd 1 24 M AY 2010 www. C ANADIAN Law ye rmag.com ng w elshe tice INDIA: A MODERN DAY SILK ROUTE P.36 hee No one and everyone is to blame for chaos and backlogs that the crim nmi al jjust ce s st are now endemic in the criminal justice system. haos anaos a bacnd cklogs that na ustice sy DOING $7.00 RAP RAP GST $7.00 Subscription Special see page 48 S b Sub see pa pa Sa Save bs summer 35% i ti S i l conviction that gives him the dubious honour of being the first lawyer in ealing the the and potential savings for consumers. The bureau cites how MLS restrictions caused the 2006 demise of Internet-based Realtysellers Ltd., which offered scaled- down services, such as an MLS-only listing service. Realtysellers, launched by Toronto lawyer Lawrence Dale and his partner, former real estate agent Stephen Moranis, has brought a $100-million lawsuit against CREA and the Toronto Real Estate Board alleging new rules were put in place to drive them out of the business. The Competition Bureau and CREA have been negotiating for three years to try to modify CREA's rules. "The MLS restrictions have prevented or lessened (and continue to prevent or lessen) com- petition substantially, stifle innovation and perpetuate the anti-competitive sta- tus quo in the market for residential real estate brokerage services in Canada. Only an Order under s. 79(1), or both sections 79(1) and 79(2), will end CREA and its members' abuse of dominant position contrary to section 79 of the Competition Act," said Competition Commissioner Melanie Aitken in a filing with the Competition Tribunal on April 9. The 15-page filing notes the issue cre- ated by the CREA's insistence it would not alter its "three pillars" of rules that govern the use of MLS. They stipulate only a realtor can place a listing on MLS, only a listing realtor can work as an agent for the property seller and assist him or her during the duration of the listing contract, and a listing realtor must agree to pay the co-operating realtor compensation that is more than zero. The filing says as a result of the three pillars, "the MLS restrictions perpetuate the control of traditional, full- service real estate brokers, ultimately at the expense of Canadian consumers." At its annual meeting, the CREA introduced a change to MLS rules that will allow sellers to pay a one-time fee to list on the system and buyers to contact sellers directly by phone. The bureau responded the change still did not open up the business to true competition. In its initial response to the Competition Tribunal filed by the CREA in late March, it stated it already offers consumers a "wide range of business models," realtors are free to set commis- sion rates, and it has adopted changes 1/21/10 10:01:07 AM C r e i g h t o n o n t h e b e n c h • J u r y t amp e r i n g • Pa r e n t a l a l i e n a t i on s y n d r ome August 2009 $7.00 ASSEMBLY LINE iinvolved in he complex remodelling of Canada's's aut mo ve iomotive industry. Hundreds o f lawyer th com the comp comple au om auttomottiv eds of lawyers are mple re LINE EM N

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