The Finnish Competition and Consumer Authority (KKV) says that the Finnish Real Estate Management Federation and six property management firms formed a price cartel to artificially boost profits in the sector.
The watchdog is calling for fines totalling 22 million euros for the industry group and the individual companies, which are based in various parts of the country. The competition authority has been investigating suspicions of illegal pricing practices in the sector for four years.
It is up to the Market Court to rule on the case and impose possible penalties.
In a statement on Wednesday, the Real Estate Management Federation denied the allegations. It said the watchdog's findings were incorrect and were merely suspicions at this point.
Variety of corporate names and groupings
The largest proposed fines were nearly 14 million euros for Realia Services Oy and more than 4.5 million euros for an affiliated company called Realia Services and Colliers International Finland Group. Both firms have undergone several name changes and mergers, as have most of the others included in the probe.
Several of the other firms are also partners in other corporate groups, and have been parts of various corporate groups and partnerships. They have operated under various names including Ovenia, Isännöinti Ilkka Saarinen, OP Koti Kainuu, Kiinteistökeskus Kainuu, Oulun kiinteistötieto, Suomen Kiinteistöhallinta, REIM Group, REIM Hämeenlinna, Realia Holding and Kiinteistö-Tahkola.
The watchdog says that the Real Estate Management Federation itself should pay some 73,000 euros in penalties.
According to the KKV, the companies and the federation agreed on fees for management services and strove to push up price levels in the industry nationally between 2014 and 2017. The aim of boosting the share of lucrative, separately charged extra services was even included in the Management Federation's strategy, the watchdog said.
Higher costs come out of residents' pockets
The Competition and Consumer Authority points out that the sole purpose of such pricing agreements is to artificially raise prices to the detriment of customers.
Kirsi Leivo, the KKV's Director-General, described it as "long-lasting, systematic cartel activity" in a statement on Wednesday. She stressed the higher prices have ultimately been paid for by the residents of housing associations.
KKV began the investigation in 2017 by seizing documents from the premises of the management companies and the Management Federation.