The US Department of Justice (“DOJ”) has concluded a preliminary
anti-trust inquiry into the on-line media and technology solutions
supplier for the home, Homestore.com. The company has been informed
by the DOJ that no enforcement action will be taken against it
following its co-operation in providing information on its business
practices.
The investigations were prompted by the $761 million all-stock
acquisition of Cendant Corp. by Homestore.com, which the company
claimed would create "the largest... marketplace for home and real
estate-related products and services on the Internet." The subjects
of investigation included certain business agreements to be entered
into by Homestore.com as part of the transaction.
In April 2000 the company acknowledged that the anti-trust
division of the Department of Justice had requested information in
order to ascertain the company’s position, although no allegations
of illegal activity were made.
In a press release from Homestore.com announcing the results of
the investigation, the Chairman and Chief Executive Officer of
Homestore.com Stuart Wolff said:
"Obviously, we're extremely pleased by the
Department's decision to close this matter… We're proud of the hard
work and innovation we have brought to the real estate industry and
we will continue to focus on serving our professional customers and
the consumers who use our products and services."
