What is it called when brokers agree not to cooperate with a broker offering lower fees or commissions?

When brokers agree not to cooperate with a broker offering lower fees or commissions, this practice is referred to as group boycotting. This term describes a situation where a group of brokers or agents collaborates to exclude or penalize a competitor, typically in an effort to maintain higher pricing or commission structures. Group boycotting is considered a violation of antitrust laws because it restricts competition in the marketplace.

This behavior can negatively impact consumers by limiting their options and keeping prices artificially high. In the context of real estate, if several brokers decide to collectively avoid working with another broker based solely on their lower fees, it eliminates fair competition and can harm both the industry and consumers seeking affordable services. Understanding group boycotting is important for real estate professionals, as it emphasizes the legal and ethical obligations they have to promote fair competition within the market.