Seznam.cz will amend pricing policy for real estate agents on Sreality.cz platform
During the proceedings, the Office investigated possible abuse of a dominant position in the provision of online text advertising services for the sale and rental of real estate on dedicated online portals enabling real estate agents in the Czech Republic to advertise. The decision is now final.
Seznam.cz was alleged to have engaged in anti-competitive conduct by charging advertisers with a small number of advertisements significantly higher unit prices (up to 50 times higher) than advertisers with a large number of advertisements. At the same time, prices varied by region and discounts depended on whether the advertiser was part of a real estate franchise or an independent agent.
After negotiations with the Office in administrative proceedings, Seznam.cz has agreed to amend the Sreality.cz price list in the section concerning text advertising for real estate agents. There will be a reduction in the basic unit price for publishing advertisements for the sale and rental of real estate, and at the same time, these prices will be the same for all real estate agents and will not vary according to the the advertised property location.
Seznam.cz has also committed to reduce the discount progression and set lower volume discounts for real estate agents associated with franchise real estate networks. This shall strengthen the competitiveness of smaller independent real estate agents, who generally advertise in smaller volumes. Seznam.cz is to introduce the appropriately adjusted price list for the Sreality.cz server within 90 days of the decision becoming final.
The Sreality.cz server has a very strong position in the field of real estate advertising, both in terms of traffic and users. "Companies with a dominant position are subject to stricter rules than other competitors. Dominant companies must therefore ensure that they deal with their suppliers, customers, or clients on the basis of non-discriminatory rules and conditions. The adoption of a commitment decision does not imply that the company under investigation actually is in dominant position and that violated competition law, but it effectively and quickly puts an end to potentially anti-competitive behaviour," explained Kamil Nejezchleb, Vice-Chair of the Office, as to why the Office dealt with different advertising prices.
Press Unit of the Office
26/030 - S629/2024
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