Federal Government remains silent whilst homegrown monopoly continues to threaten competition
Statement from CEO: Federal Government remains silent whilst homegrown monopoly continues to threaten competition
5 November 2024 – The Federal Government continues to remain silent whilst the PEXA monopoly threatens competition in the more than $800bn eConveyancing market to the detriment of the Australian economy and home buyers.
Whilst Sympli continues to advocate for NSW to use its enforcement powers, it is evident that State and Territory Governments need urgent help from the Federal Government to tackle this homegrown multi-billion-dollar monopoly. PEXA presents a major risk to the Australian financial system given it is a single source of failure as critical infrastructure underpinning the property and banking industries.
Early this year, States and Territory Governments wrote to the Treasurer and Minister Leigh for Federal support to help them resolve issues raised by the major banks. Media reports at the time also revealed that PEXA had sent legal letters to the major banks, claiming intellectual property over long standing industry processes.
Unfortunately, industry’s consistent cries for help to the Treasurer and Minister Leigh has fallen on deaf ears. These are issues which clearly sit within the remit of the Federal Government, yet there has been no action from the ACCC or any other Federal body. The market needs urgent and swift action from the Federal Government to rein in this monopoly, which continues to unfairly benefit from its origins as a former COAG initiative created by the then Labor Government.
This lack of action by the Federal Government is also deeply concerning, as the unchecked PEXA monopoly is now growing into a homegrown digital platform monopoly. This potential and path for untapped growth places the monopoly among the likes of social media giants, expanding its reach into other property tech markets across Australia, estimated to be worth more than $1.1bn by 2027 1. PEXA is also exploiting what was a COAG initiative to build its business overseas, effectively shipping investment, jobs, and any benefits of innovation out of the country.
Disturbingly, recent quotes also indicate that PEXA is lobbying Government to have the interoperability model replaced with one that supports models integrating with their system only – shutting down competition forever in this market – this cannot be allowed to happen.
We ask that the Federal Government acts now by providing urgent support to the States and Territories and directing the ACCC to launch an inquiry into PEXA.
1. https://www.pexa-group.com/staticly-media/2023/12/Investor_Day_Nov_23-sm-1701686736.pdf, Page 18.
Media Inquiries: Jerome Boutelet, Public Affairs Manager at media@sympli.com.au, or 0411 045 119
About Sympli
Sympli is the result of a collaboration between InfoTrack and ASX. We want to create more opportunity, add value and represent the market with an e-Settlements service from which practitioners across Australia can benefit.
InfoTrack is Australia’s leading provider of eConveyancing technology and services and has been creating software for the legal and financial industries for over 18 years. InfoTrack has a focus on simple, end to end solutions, leveraging expertise to craft a truly integrated e-settlements platform that you can trust.
As one of the world’s leading financial exchanges, the ASX bring experience in clearing and settling transactions with security, speed, reliability, and cutting-edge technology. The combination of the two bring you Sympli: the next generation e-settlements solution delivering healthy competition, reliability, security and value to the industry.
For more information visit sympli.com.au