DOJ leadership has suspended the antitrust review of the Compass–Anywhere agreement
According to the The Wall Street Journal (WSJ) and Bloombergantitrust enforcers at the Department of Justice (DOJ) wanted to investigate the recently closed Compass acquisition of Anywhere, but were blocked by senior officials who wanted to shed light on the deal. Sources familiar with the situation told the WSJ and Bloomberg that Gail Slater, head of the DOJ’s antitrust division, wanted to conduct an expanded review of the proposed merger for potential anti-competitive effects.
But according to media sources, sources said that Compass and its lawyers, including Mike Davis, a confidant of President Donald Trump, appealed to his administration, including Deputy Attorney General Todd Blanche, telling his office that any issues of dishonesty can be resolved without a full investigation.
A spokesperson for Blanche’s office told the WSJ that the DOJ “has complied with its obligations” to review the agreement, noting that even after the deal is closed, “there is nothing preventing the department from taking enforcement action in the future if anti-competitive results are found.”
In response to HousingWire, a DOJ spokesperson wrote in an email that the department did not want to comment on the matter. Blanche has not responded to HousingWire’s request for comment.
Antitrust experts told HousingWire the timeline for antitrust reviews of mergers this size can vary. If the issues are resolved or nothing comes up during the waiting period of the Hart-Scott-Rodino Antitrust Improvements (HSR) Act of 1976, the deal could move quickly, as Compass and Anywhere did. However, if a request for a second document is brought by the antitrust regulators, the process can be extended for several months. This perhaps suggests why Compass initially speculated a summer or fall 2026 closing date for the acquisition.
When reached by HousingWire, Compass did not wish to comment on the DOJ’s review of the merger.
Competitive or anti-competitive?
Since announcing the planned merger in mid-September, Compass and its CEO Robert Reffkin have maintained that the deal was anti-competitive.
In an open letter to Compass agents, partners and employees sent Friday, Reffkin, who is also CEO and chairman of Compass International Holdings, wrote that the company believes “choice and competition are new fuels, and we will never impose a one-size-fits-all mandate.” He also noted that all six different models of Compass acquired through Anywhere will continue to operate independently.
The reports from the WSJ and Bloomberg come after lawmakers, including Sens. Elizabeth Warren (D-Mass.) and Ron Wyden (D-Ore.), called the DOJ and Federal Trade Commission (FTC) to consider blocking the deal. In a letter sent to federal regulators in December, they argued that the purchase could hurt homebuyers by contributing to higher brokerage costs and reducing access to real estate listings.
This concern came as it was analyzed in both The Capitol Forum again A landmark stone indicated that the combined company’s market share would far exceed the 30% market share threshold established by the DOJ and FTC in their 2023 Merger Guidelines.
The real estate industry is responding
Within the real estate industry, real estate experts have widely agreed that the deal has the potential to make big waves.
Because United Real Estate CEO Dan Duffy, the closing of this deal is “a success for the buying and selling community,” because he feels it will accelerate the work of the real estate industry.
“Those who can get better. Those who can’t get out will get out of the industry,” Duffy said in an emailed statement to HousingWire. “The public will enjoy services delivered better, more efficiently and more efficiently from the greater number of options available to you when buying or selling homes in the US. We welcome strong competitors. They make us better.”
He added that he believes the current fragmentation and competitive atmosphere within the residential and commercial real estate technology will remain despite this major consolidation.
In a post on LinkedIn on Friday, congratulating Reffkin on the news, NextHome CEO James Dwiggins said he agrees with the idea that the industry will be transformed by Compass’s acquisition of Anywhere, but believes the industry will be hit by a big wave of M&A.
“You’re going to see some big companies consolidating and acquiring each other to form what I believe will be three or four big companies that control 60-70% of the seating in the US. It will look like the airline industry (United, Delta, American) and then there will be smaller players that specialize in local markets,” Dwiggins wrote. “All of this M&A will happen in the next 24 months.”
According to Dwiggins, the closing of this transaction is not “game over” but rather the beginning of a “chess game between the biggest players in the residential area.”
“There are many steps to be taken and Compass has just taken the first,” he wrote. “The next 36 months are going to be amazing to watch!”
Seeing it as a good thing
As for smaller agents and dealers, both those now under the Compass umbrella and those with other companies, they see the deal as a good one.
“As a The Corcoran & Wherever you are a seller, I look forward to this next chapter with Compass. I believe this will expand and improve our service offering while unlocking valuable data and insights to better serve our clients,” David Eskander, a New York City-based Corcoran broker, wrote on LinkedIn. “Going further and further!”
Down in Austin, Texas – one of the markets where Compass is now expected to have a market share of more than 30% – Kinan Beck, senior salesman and team leader. eXp Realty brokered One Source Teamhe sees the merger as an opportunity to tap into building stronger customer relationships and better use technology and AI tools, enabling him to provide clients with a more personalized experience.
“At its core, real estate is always a relationship business,” Beck wrote in an email to HousingWire. “The most successful and experienced agents build trust and long-term relationships before, during and after the purchase. It’s those relationships that ultimately drive repeat business and referrals – not the brand name of the brokerage.”
