As the findings of the Office of Competition and Consumer Protection's president indicate, price changes stem from changes in Otodom's service regulations. It concerns the introduction of a new billing model.
“This model is intended to be based on setting fees for posting listings, among other things based on the value of all properties offered by a given user within a specified billing period,” the UOKiK statement reads.
The change leads to differentiated fees for individual entities, depending on local market prices. This means portal customers have no influence over how high the fee they must pay will be.
Complaints to UOKiK about Otodom
According to complaints directed to UOKiK, portal customers fear that the regulation change could negatively affect intermediaries who trade real estate. That is not the only controversial issue. According to information provided by UOKiK, portal customers who reported to the office also fear lack of transparency in fee-setting rules, as well as differentiation of cooperation terms with real estate agencies.
“We decided to check whether the new rules violate competition law. We are verifying whether the owner of the Otodom service holds a dominant position, meaning whether they can operate largely independently from competitors, contractors, and consumers. We will check whether the new rules could result in a restriction of competition in the market, including between intermediaries,” said the quoted UOKiK president Tomasz Chróstny in the statement.
UOKiK on market rules
The UOKiK statement does not indicate that Otodom violated rules by changing its regulations, which led to a change in the amount of fees for people using the portal to post a real estate sale listing.
At the same time, UOKiK reminds of the market rules to which companies, including the Otodom portal, are subject.
“In competition law there is a presumption that if a company's share of the relevant market exceeds 40%, it has a dominant position. A dominant entity cannot abuse such market power and use it to the detriment of its contractors, competitors, and consumers,” the UOKiK statement reads.
If a situation arises where an entity uses its dominant market position, the UOKiK president can intervene to stop that practice. This occurs in the event of a competition law violation. It happens not through direct price interference, but by eliminating prohibited practices, which can indirectly lead to a price drop.
“The investigative procedure is conducted in the matter, not against the entrepreneur. If the analysis shows that a competition violation may have occurred, the UOKiK President will start an antimonopoly proceeding. Abuse of a dominant position can result in a penalty of up to 10% of the company's annual turnover,” UOKiK informs.
See also: Price-fixing in Polish stores. UOKiK President: “Five years of overpaying.” Check if you lost money
