On April 17, the Office of the Superintendent General (SG) at the Administrative Council for Economic Defense (CADE) launched an administrative proceeding against the Regional Council of Real Estate Agents (CRECI-PE) in the Brazilian state of Pernambuco.
This investigation is focused on potential anti-competitive practices, particularly price-fixing, within the local real estate market. In response to the findings, CADE has imposed an interim measure to halt CRECI-PE’s anti-competitive activities.
The investigation was initiated after a complaint was filed against an individual associated with CRECI-PE, following the publication of an Instagram post that advertised discounted property prices. Upon review, evidence indicated that CRECI-PE had posted a contract template on its website, outlining commission fees for real estate agents that were higher than the actual fees typically charged by professionals in the industry. This prompted CADE to issue a notice of violation and a public statement condemning the Council’s practices.
Further scrutiny revealed that the Council’s website also featured an outdated version of the Code of Professional Ethics for Real Estate Agents. CADE identified that this code could potentially influence pricing practices within the real estate market, especially with regard to real estate brokers’ services. The publication of such documents, which set standards for pricing, raised concerns about anti-competitive behavior.
In response, CADE imposed several interim measures. CRECI-PE has been ordered to remove all posts linking discounts on real estate services to anti-competitive practices and is prohibited from making new posts of a similar nature. Additionally, CADE instructed CRECI-PE to halt any administrative actions against professionals who offered discounts or did not adhere to the prescribed fee schedules. The Council must also delete any documents referencing these fee schedules within the designated time frame.
Interim measures are issued by CADE when there is evidence that the conduct under investigation could cause irreparable harm to the market or distort the proceedings. Following the completion of the discovery phase, the SG will issue a final opinion on the matter, which will be submitted to the CADE Tribunal for further action. If found guilty of anti-competitive behavior, the individuals involved may face fines ranging from BRL 50,000 to BRL 2 billion ( USD 10,000 to USD 400 million).
CADE, Brazil’s antitrust authority, has been investigating price-fixing in the real estate sector, taking action against several unions and organizations.
In September 2024, CADE convicted 11 real estate unions and FENACI for price-fixing by imposing standardized fee schedules, inflating prices and limiting competition. They were fined over BRL 1 million, and CADE ordered the removal of these price lists. In October 2023, CADE also fined CRECI in Mato Grosso do Sul and 10 associations a total of BRL 825,000 for similar uniform pricing practices. Additionally, CRECI-GO was fined BRL 300,000 (USD 60,000) for enforcing fixed pricing among brokers.
CADE’s actions are grounded in Brazil’s Competition Law (Law No. 12,529/2011), which prohibits anticompetitive practices such as price-fixing, market allocation, and bid-rigging.
