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August 4, 2010

On July 16, 2010, the Competition Tribunal issued a scheduling order setting hearing dates for the main application in the CREA abuse of dominance case.

On February 8, 2010, the Canadian Competition Bureau filed an abuse of dominance application against one of Canada’s largest single industry trade associations – The Canadian Real Estate Association.

According to the Bureau, CREA’s has used its MLS Rules to maintain control of the market for residential real estate brokerage services in Canada and, in particular, to inhibit or prevent non-traditional business models, including fee-for-service and flat fee models, from providing additional choices to consumers.

The MLS abuse of dominance case, which is one of less than ten contested abuse of dominance cases in Canada in the past twenty-five years, raises a number of interesting questions, including the appropriate market definition when the target is a trade association not engaged in the services at issue, whether (and based on what test) a network or other asset should be considered an essential input and whether (and to what extent) trade-mark rights can be unilaterally exercised without triggering competition law  scrutiny.

For more on the CREA abuse of dominance case and pleadings in this case, see: Competition Tribunal.

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