Antitrust Law Daily Wrap Up, ANTITRUST NEWS: CoreLogic, Inc. settles FTC charges in acquisition of DataQuick Information Systems, (Mar 24, 2014)

By Linda O’Brien, J.D., LL.M.

CoreLogic, Inc. has agreed to settle FTC charges that its proposed $661 million acquisition of DataQuick Information Systems, Inc. from TPG VI Ontario 1 AIV L.P. (TPG) would likely substantially lessen competition in the market for national assessor and recorder bulk data, the FTC announced today.

National assessor and recorder bulk data includes current and historical public record data in a standardized bulk format for the vast majority of properties in the United States. Assessor and recorder data together provide information regarding the ownership, status, and value of properties. Customers use this data as an input into proprietary programs and systems for internal analyses. They also may use the data to create value-added products, such as risk and fraud management tools, valuation models, and consumer-oriented property websites.

According to the FTC’s complaint (In re CoreLogic, Inc., File No. 131-0199), the proposed combination of CoreLogic’s and DataQuick’s national assessor and recorder bulk data businesses would eliminate one of only three providers of national assessor and recorder bulk data. The complaint alleges that the proposed acquisition would increase the risk of anticompetitive coordination between the remaining two market participants and the risk that CoreLogic would unilaterally exercise market power and raise prices for customers.

CoreLogic, headquartered in Irvine, California, provides real property information, analytics, and services through a host of products focused on the needs of customers in the lending, investment, and real estate industries. The company collects and maintains national assessor and recorder bulk data and is the largest provider of this data in the United States.

DataQuick, based in San Diego, California, is a subsidiary of Decision Insight Information Group, which itself is a subsidiary of TPG, a global private investment firm. As part of its business, DataQuick offers licenses for national assessor and recorder bulk data. Its license with CoreLogic allows it to relicense the data in bulk. In June 2013, CoreLogic entered into an agreement to acquire DataQuick, from TPG.

To preserve competition that would be lost due to the acquisition, the FTC’s proposed settlement order requires CoreLogic to license to Renwood RealtyTrac (RealtyTrac) national assessor and recorder bulk data as well as several ancillary data sets that DataQuick provides to its customers. The proposed order allows RealtyTrac to offer customers the data and services that DataQuick currently offers and become an effective competitor in the market. RealtyTrac operates an online marketplace of foreclosure real property listings and provides national foreclosure data services to real estate consumers, investors, and professionals.

The Commission vote to accept the consent agreement containing the proposed consent order for public comment was 4-0.

Companies: CoreLogic, Inc.; DataQuick Information Systems, Inc.

News: Antitrust FederalTradeCommissionNews