January 13, 2010 1:29 PM
Homeowners to FCC: Continue to Preserve the Open Internet
The importance of an open Internet to economic opportunities and the wellbeing of homeowners and other consumers grows every day. It is important for commerce, education, healthcare, and provides many other opportunities, such as the ability to work from home. Homeowners are fortunate in that the Federal Communications Commission has done a very good job of assuring that the providers of the networks used by consumers to access the Internet continue to be open and neutral.
The way in which we access the Internet is also changing. The four principles of network neutrality, which guide the FCC's efforts to preserve an open Internet, were written at a time when most of us accessed the Internet from our homes or offices. Today mobile access is becoming much more important, and the FCC is modifying its rules to address this new environment. The American Homeowners Grassroots Alliance supports that exercise. In our January 14 FCC submission we thanked the commission for their commendable performance and urged a similar approach to the new environment and the issues that arise from it.
We also urged the FCC to collaborate with the U.S. Department of Justice and the Federal Trade Commission to address some serious antitrust challenges that are outside of the scope of the current inquiry. The nation's national online network of homes for sale has faced repeated efforts to deny home sellers the services of discount real estate brokers who provide sales assistance at a fraction of the typical 5-6% real estate commission. Currently about 90% of home buyers search for homes on that consumer-facing online network, so it's imperative for home sellers to get exposure on that network. If they are denied access to that network because they prefer to use a discount real estate broker, an owner of a $200,000 home might be forced to pay a $10,000 - 12,000 real estate commission instead of a few hundred dollars a discount broker would charge.
The Federal Trade Commission has taken the lead on addressing this challenge and has initiated efforts to stop the efforts of numerous local Multiple Listing Services (MLSs) across the country who have sought to limit home sellers access to their networks through discount brokerage services. The FTC has been successful in the ongoing series of cases, although one MLS is now appealing the initial FTC finding against it.
Federal competition laws or regulations must be strengthened in order to more effectively discourage dominant private Internet commerce networks and search firms from engaging in such actions. In our comments AHGA urged the FCC to support such changes.
The way in which we access the Internet is also changing. The four principles of network neutrality, which guide the FCC's efforts to preserve an open Internet, were written at a time when most of us accessed the Internet from our homes or offices. Today mobile access is becoming much more important, and the FCC is modifying its rules to address this new environment. The American Homeowners Grassroots Alliance supports that exercise. In our January 14 FCC submission we thanked the commission for their commendable performance and urged a similar approach to the new environment and the issues that arise from it.
We also urged the FCC to collaborate with the U.S. Department of Justice and the Federal Trade Commission to address some serious antitrust challenges that are outside of the scope of the current inquiry. The nation's national online network of homes for sale has faced repeated efforts to deny home sellers the services of discount real estate brokers who provide sales assistance at a fraction of the typical 5-6% real estate commission. Currently about 90% of home buyers search for homes on that consumer-facing online network, so it's imperative for home sellers to get exposure on that network. If they are denied access to that network because they prefer to use a discount real estate broker, an owner of a $200,000 home might be forced to pay a $10,000 - 12,000 real estate commission instead of a few hundred dollars a discount broker would charge.
The Federal Trade Commission has taken the lead on addressing this challenge and has initiated efforts to stop the efforts of numerous local Multiple Listing Services (MLSs) across the country who have sought to limit home sellers access to their networks through discount brokerage services. The FTC has been successful in the ongoing series of cases, although one MLS is now appealing the initial FTC finding against it.
Federal competition laws or regulations must be strengthened in order to more effectively discourage dominant private Internet commerce networks and search firms from engaging in such actions. In our comments AHGA urged the FCC to support such changes.
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