Realtors accused of syndicated price-fixing

Finnish Competition and Consumer Authority (Kilpailu- ja kuluttajavirasto -KKV) has accused the Finnish Real Estate Management Federation and six property management firms of earning extra profits by creating a price cartel.

The KKV brought the issue to the Market Court after investigating into the illegal acts for the last four years and urged for realisation of 22 million euro in fines for the industry group and the individual companies, said the KKV in a press release on Wednesday.

The industry group and companies are situated at different parts of the country.

Meanwhile, the Real Estate Management Federation in a statement on Wednesday denied the allegations, terming the findings of the KKV as incorrect and merely suspicions in this regard.

The KKV proposed about 14 million euro fine for Realia Services Oy and more than 4.5 million euro for an affiliated company named Realia Services and Colliers International Finland Group, reported the bational broadcaster Yle.

Both the companies reportedly changed name several times.

Some other companies are also partners in other corporate groups, and became parts of different corporate groups. They were operated under different names such as Ovenia, Isännöinti Ilkka Saarinen, OP Koti Kainuu, Kiinteistökeskus Kainuu, Oulun kiinteistötieto, Suomen Kiinteistöhallinta, REIM Group, REIM Hämeenlinna, Realia Holding and Kiinteistö-Tahkola, said the Yle, quoting the KKV.

The KKV also said that the Real Estate Management Federation itself should pay some 73,000 euro in penalties.

The KKV in the press release said the companies and the federation agreed on fees for management services and strove to push up price levels in the industry nationally between 2014 and 2017.

“According to our proposal, it is a long-lasting, systematic cartel activity, said KKV Director-General Kirsi Leivo in the statement, adding that the higher prices have ultimately been paid by the residents of housing companies.