Real estate agencies under the Capital franchise network were penalized for agreeing to charge a minimum 3 percent commission fee to clients, which limited competition. The Competition Council discovered that Capital Realty and 20 agencies had colluded to uphold this fee between 2015 and 2020.

Advisors specializing in competition law should take note of the implications of anti-competitive agreements within franchise networks, as exemplified in this case. The fines imposed on the implicated companies underscore the significance of complying with competition regulations and avoiding practices that hinder fair competition in the real estate sector.