Proposed Consent Agreement In the Matter of CoreLogic, Inc. #00007

Submission Number:
Shylah Alfonso
Zillow, Inc. & Perkins Coie LLP
Initiative Name:
Proposed Consent Agreement In the Matter of CoreLogic, Inc.
Matter Number:


Zillow, Inc., submits the following continued comments in response to the FTC’s proposed CoreLogic, Inc., Consent Agreement; File No. 131-0199. [Continued from previous comment submitted] Moreover, including Zillow and other similarly situated companies within the Terminating DataQuick Customers would resolve an unfair inconsistency between those DataQuick customers that may terminate their contracts and those that cannot. The proposed consent agreement would allow contract termination by DataQuick customers who entered into contracts with DataQuick after the acquisition, i.e. with full knowledge that CoreLogic would be taking over contract performance, while prohibiting contract termination by those DataQuick customers who entered into contracts with DataQuick before July 1, 2013, i.e. without any knowledge that their contracts would be taken over by CoreLogic. Therefore, a DataQuick customer that entered into a contract knowing about the merger may still terminate the contract with 180-days’ notice whereas Zillow is forced to stay in a contract with a party it never intended to contract with for two more years. This inequitable distinction can be resolved by Zillow’s requested revision to the proposed consent agreement. Not only is this distinction arbitrary, but it compounds the harm to Zillow. Zillow’s competitors that contracted with DataQuick while knowing about the merger will nonetheless be able to take advantage of a termination right and the entry of a new competitor to obtain better services at better prices. This is a competitive advantage that Zillow will not be afforded to its detriment. Finally, to fully restore a third entrant in the market that will not only be a competitor, but a strong competitor, the categories of Terminating DataQuick Customers should be expanded. A sizeable portion of the market will not be available to RealtyTrac given that only the narrowly selected categories of customers are permitted to terminate DataQuick contracts and move to RealtyTrac. Indeed, RealtyTrac is foreclosed from competing for Zillow’s business, and other similarly situated customers, for nearly two years. RealtyTrac will be incurring significant costs as it ramps-up to compete with CoreLogic and Black Knight, yet will be prohibited from recouping those costs through competition for a segment of the market for nearly two years. To protect against merger-specific harms, remove a competitively disadvantageous inconsistency, and promote a strong third competitor, Zillow respectfully requests that the CoreLogic consent agreement and the early termination provisions therein be expanded to include DataQuick customers that entered into contracts with DataQuick prior to July 1, 2013, or at a minimum, on or after October 1, 2010.