A license that is more than a license

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Today, the Commission accepted for public comment a proposed order designed to preserve competition after the merger of CoreLogic and DataQuick, two of only three firms that license national assessor and recorder bulk data. The proposed order does this by facilitating the entry of RealtyTrac to replace the loss of DataQuick as an independent competitor. To establish RealtyTrac as a viable entrant, CoreLogic is required to supply the company with nationwide real property bulk data through a multi-year license. Using a license to facilitate entry replicates the current market structure and, although not typical, is appropriate here given the existing competitive dynamics.

According to the FTC’s complaint, CoreLogic and DataQuick compete to provide national assessor and recorder bulk data. This data is public information about individual real estate properties maintained by county assessor and recorder offices. It consists of descriptive information, such as square footage and the number of bedrooms; and financial data, such as purchase price, mortgage terms, and lien details. CoreLogic and DataQuick provide this data on a nationwide basis to a variety of customers, from financial firms who use the data for risk and fraud analysis to internet start-ups who create consumer-oriented real estate web sites. These customers use both current and historical information, often licensing data that goes back a decade or more. As alleged in the FTC’s complaint, new competitors are not likely to emerge in this market because of the high cost of obtaining the necessary data, especially the cost of gathering historical information. DataQuick and CoreLogic both own years of historical data and can gather their own going-forward data. However, several years ago, DataQuick started getting most of its going-forward data from CoreLogic through a unique license that gave DataQuick rights allowing it to continue serving its customers and competing vigorously with CoreLogic.

Without a remedy, the CoreLogic-DataQuick deal would leave customers with only two choices for national assessor and recorder bulk data. The proposed order enables new entry by requiring CoreLogic to provide RealtyTrac with historical data and deliver going-forward data for up to seven years through a DataQuick-type license. This allows RealtyTrac to enter the market with national assessor and recorder bulk data that is equivalent to that offered by DataQuick and gives RealtyTrac perpetual rights to all of the data—both historical and going-forward—that it receives from CoreLogic pursuant to the Order. Remedying the anticompetitive effects of the transaction through a license is appropriate given that DataQuick’s participation in this market is through a license from CoreLogic.

The goal of a merger remedy is to maintain (or restore) the pre-transaction competitive dynamics in the relevant market. The proposed Order does this by allowing RealtyTrac to enter the market quickly and providing it with the assets and know-how to remain in the market after expiration of the required data license. The fact that it does so using a license is an illustration of how the Commission tailors the remedy to best replicate the competitive status quo while ensuring that the buyer has what it needs to compete quickly and effectively in the relevant market.

The public is invited to comment on the proposed order through April 23, 2014, and comments can be submitted online.


Thanks keep me posted

This is a violation of personal privacy, that has led to extreme personal emotional illness for myself, which nearly required hospitalization (this can be documented) nevermind the expense and fallout on all the other members of my family. This need to be stopped. Quite a few (expletive deleted) have been running fake Google adwords and having a grand old time at our expense. Meanwhile we're all tearing our hair out in frustration, the local police seem to think that I'm the problem (and pretty much threatened to come over and arrest me for complaining) and Google was very uncooperative too. Would have been nice if we had been informed before the prior comment period about the Google settlement and all the fake Advertising, it hasn't slowed down one bit, still going on. This idiot took a Google street view, and Google pretty much said "your on your own, ask the webmasters to take it down". With 20 pages of web sites out there advertising our house as an apartment building, a taxi service and I forget what else, I also found my entire family's personal details, email addresses, DOB, SSN, you name it, it was there. So, after 20 pages, I was feeling quite sick and couldn't go any further, I had seen plenty. This really does need to stop, and it's a serious violation to our 4th amendment rights (among other things, I've spoken with an attorney in cyberfraud, and she said we could easily start handing out subpoenas to all kinds of people any time. I told her I'd think about it and get back to her.) I'm seriously fed up. This has really got to stop. And now law enforcement wants to start flying drones around to look inside people's windows? Really? I don't feel like I've got anything to hide, but my friend didn't either. A SWAT team messed up making a drug raid and kicker in her door, shot her dog, tore up her furniture. Not a lot she can do now. Mistakes happen all the time, after someone (or one of my pets) is dead, it's too late. Why should some real estate company have our property tax assessment records that we paid for, so that they can sell real estate and drive the bubble around here to insane heights like it was 14-15 years ago? I work in real estate too. And I've lived here all my life. I've seen this tech plus real estate boom and bust cycle before. It's all too predictable. We're heading for a big fall, these people are trashing the local economy, and creating the foreclosure market of the future.

Hi, if you would like to file an official complaint with the FTC, please see www.ftc.gov/complaint. Thank you!


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