Compass reportedly facing antitrust scrutiny in NY

The New York Attorney General’s office is reportedly gathering information about Compass’ market share in New York City, focusing on the brokerage giant’s dominance after its acquisition of Anywhere Real Estate. The investigation follows concerns that the merger may have violated antitrust guidelines, particularly in markets like Manhattan, where Compass and Anywhere together held over 80% of transactions in 2024. A Capitol Forum report in December highlighted that the combined company’s market share exceeded federal thresholds, raising red flags about potential elimination of competition. Compass’ stock price fell nearly 15% on Wednesday after *The Real Deal* reported the probe, though it partially recovered later in the trading session. The Attorney General’s office has not confirmed the investigation, and Compass declined to comment. The scrutiny comes after the $1.6 billion acquisition of Anywhere closed in January 2026, a deal that faced minimal regulatory review and prompted concerns from U.S. lawmakers, who accused officials of potential corruption in the approval process. The Department of Justice initially considered blocking the merger but was reportedly overruled by senior officials, according to *The Wall Street Journal*. Federal Trade Commission guidelines state that market shares above 30% may indicate a merger’s effect to eliminate substantial competition. The investigation could now revisit whether the deal violated these standards, particularly in high-share markets like Manhattan. The probe marks a shift from earlier regulatory oversight, where the DOJ approved the merger in just four months despite warnings from antitrust enforcers. Lawmakers had previously criticized the approval, citing risks to housing affordability and competition. The Attorney General’s office is now examining whether Compass’ expanded market position in NYC warrants further action under antitrust laws.