Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

The Sherman Antitrust Act

The Sherman Antitrust Act is the foundational federal law prohibiting contracts, combinations, and conspiracies in restraint of trade, giving regulators power to challenge price fixing, group boycotts, and tie-in arrangements among real estate brokers and related businesses.

Exam context

Sherman Act bans anticompetitive agreements among brokers. Price fixing and group boycotting are classic Section 1 violations. Tie-in agreements forcing unrelated services may violate Sherman and RESPA.

Section 1 and brokerage conduct

Section 1 targets coordinated anticompetitive agreements. Real estate examples include brokers agreeing on commission rates, boycotting a discount firm, or dividing markets by territory. Per se violations such as horizontal price fixing face strict liability. Rule-of-reason analysis may apply to some vertical arrangements with pro-competitive effects.

Enforcement and licensing

The Department of Justice and Federal Trade Commission investigate brokerage practices alongside state real estate commissions. MLS rules must have legitimate business purposes. Agents who participate in anticompetitive meetings risk civil treble damages and license revocation even when they did not initiate the scheme.

Examples

  • Commission collusion

    Brokers in a county agree to charge no less than 6% listing commissions. DOJ treats the horizontal price-fixing agreement as a per se Sherman Act violation.

  • Group boycott

    Multiple firms refuse to cooperate with a new low-fee brokerage. Coordinated refusal to deal supports a Section 1 conspiracy claim.

Keep studying

Practice the sherman antitrust act questionsEnroll in pre-licensing

Related terms

  • Price fixingHorizontal agreement on fees barred under Sherman Act.
  • Group boycottingCoordinated refusal to deal with a competitor or consumer.

Related resources

Sources