CoStar Group, Inc., Lonestar Acquisition Sub, Inc., and LoopNet, Inc., In the Matter of

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In the Matter of CoStar Group, Inc., Lonestar Acquisition Sub, Inc., and LoopNet, Inc.
FTC Matter/File Number:

111 0172

Enforcement Type:

Part 2 Consents

Case Summary

On 4/26/2012, the FTC required CoStar Group, the largest provider of commercial real estate information services in the United States, to sell LoopNet's ownership interest in Xceligent, under a proposed order settling charges that CoStar's $860 million acquisition of LoopNet would be anticompetitive. The FTC's complaint alleges the proposed acquisition would violate the FTC and Clayton Acts by reducing competition in the markets for real estate listings databases and information services. On 8/30/2012, the FTC approved a modified final order settling charges that CoStar Group, Inc.'s $860 million acquisition of Loopnet would have been anticompetitive in the market for commercial real estate information services in the United States. The modified final order resolving the charges preserves competition that otherwise would have been lost through the acquisition by requiring the combined firm to sell LoopNet's interest in Xceligent, a significant provider of U.S. commercial real estate information. The FTC proposed, and CoStar agreed to, four modifications to the proposed consent order.