FTC Approves Modified Final Order Settling Charges that CoStar’s $860 Million Acquisition of LoopNet was Anticompetitive

WASHINGTON, D.C. – August 30, 2012 – (RealEstateRama) — Following a public comment period, the Federal Trade Commission has 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 modified final order addresses concerns expressed in the more than 50 public comments the FTC received after approving the proposed consent agreement with the companies. Based on these comments, the FTC has proposed, and CoStar has agreed to, four modifications to the proposed consent order. The modifications, which can be found in the final order linked to this press release on the FTC’s website, address concerns regarding the proposed order’s clarity and the ability of the commercial real estate industry to support the competitive expansion of Xceligent.

The Commission vote approving the modified final order and letters to the members of the public who commented was 4-0-1, with Commissioner Maureen Ohlhausen not participating. (FTC File No.111-0172; the staff contact is Justin Stewart-Teitelbaum, Bureau of Competition, 202-326-3597; see press release dated April 26, 2012.)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

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Mitchell J. Katz
Office of Public Affairs

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Federal Trade Commission

The Federal Trade Commission (FTC) deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy.

The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.

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