REA to remove contract restrictions after ACCC competition probe 

Following over a year of probe, the national listing company has entered into a court-enforceable undertaking with the ACCC.

In May 2025, the ACCC raised concerns that REA’s contracts with real estate agencies contained anti-competitive restrictions.

The regulator said the contract’s provisions could limit the ability of rival property listing platforms to compete, as most agencies were locked into listing all their properties for sale or lease on realestate.com.au.

Other agreements required or encouraged agencies to list all or a set number of properties at higher listing tiers, which offered greater visibility on the platform but came with higher fees.

The ACCC said it had heard from a number of real estate agents who raised concerns about REA’s contract requirements.

Under the new undertaking, REA cannot require agencies to list all or most of their properties on realestate.com.au as a condition of subscribing to its listing services, or make access to other benefits conditional on the same commitment.

Additionally, from 1 January 2027, agencies must be given the option to downgrade at least 25 per cent of eligible sale and rental listings to a lower listing tier.

ACCC chair Gina Cass-Gottlieb said the ACCC was concerned REA’s contract terms may have limited the choices available to agencies and made it harder for competing listing platforms to compete.

“This is a win for competition in the real estate listing market and is expected to enable real estate agents to offer their vendor or landlord clients the listing service that best meets their property advertising needs,” Cass-Gottlieb said.

Cass-Gottlieb said the changes were expected to give agents and agencies greater choice, with the benefits ultimately reaching Australian property owners.

“We encourage vendors and landlords to discuss available listing options with their agents following REA’s undertaking, so they can consider the different listing options and fees on different portals to determine what best suits them,” Cass-Gottlieb said.

REA has acknowledged the ACCC’s concerns and agreed to make changes to its business practices for three years under the undertaking accepted by the regulator.

In an ASX announcement, REA Group Ltd (ASX) said it had worked constructively with the ACCC.

REA said the ACCC had not issued legal proceedings against the company and there had been no finding of legal wrongdoing.

The company said it had agreed to commitments including not requiring agency customers to list all or most of their properties for sale or rent on the platform, as well as providing greater flexibility for agents to downgrade listings to lower tiers.

“REA’s strategic direction remains to provide choice, value and flexibility to its customers and consumers, and its business continues to be deeply focused on delivering products and services that improve the property experience of buyers, sellers and renters,” the statement said.