An Unavoidable Monopoly: PEXA in the Domain of E-conveyancing
The landscape of e-conveyancing in Australia may soon be dominated by a single entity, PEXA. The Australian Registrars’ National Electronic Conveyancing Council (ARNECC) recently announced halting its interoperability reform program, paving the way for PEXA to monopolize the industry. This decision has far-reaching implications for the e-conveyancing supply chain, potentially leading to a high margin monopoly. The impact on industry participants, particularly small law firms, could be significant.
ARNECC’s Decision: A Game Changer for E-conveyancing
On 24 March 2026, ARNECC announced that without Commonwealth Government support, it would not proceed with the Interoperability Program. The program envisaged implementing direct connect interoperability, the practitioner choice interoperability model, and other models for competition considered in the Cost Benefit Analysis report. The decision indicates that ARNECC will instead focus on strengthening the eConveyancing regulatory regime to deliver better outcomes for industry, working with other regulatory authorities and market participants to close any gaps in the regime.
PEXA’s Strategic Move: Separation Plan
Following ARNECC’s decision, PEXA revealed its plans for implementing a formal Separation Plan across the PEXA Group. The core business, PEXA Exchange, will be structurally separated from other PEXA Group businesses and services, such as PEXA Clear. This strategic move will allow PEXA Group to explore new products and services outside PEXA Exchange, ensuring no PEXA Group service has an unfair market advantage.
The Implication: An Imminent Monopoly
This separation is widely interpreted as PEXA’s preliminary move to directly supply conveyancing services, supplementing its core exchange business. Industry insiders expect this could potentially lead to PEXA consuming all revenues and profits throughout the conveyancing supply chain, leading to a high margin monopoly.
Industry Reactions
Lawlab managing director Ian Perkins expressed his disappointment with ARNECC’s decision, stating that it confirmed competition would not emerge unless banks allowed it. He asserted that this decision effectively renders Australia’s property market at the mercy of the banks.
Perkins highlighted that a viable competitor, Sympli, has already built a complete settlement platform capable of handling refinances and property transfers. However, its growth has been stymied by the fact that no Australian bank has ever accepted a Sympli workspace. This coordinated refusal has preserved PEXA’s dominance in the industry.
The Future of E-conveyancing
If PEXA pushes into directly supplying conveyancing services, it could eliminate many competitors, including small law firms that handle a limited number of conveyancing transactions each year. However, Sympli remains committed to being a part of a competitive property transfer market. Sympli CEO Philip Joyce warned of the adverse outcomes of monopolies, including higher prices, and urged governments to work together to deliver competition and resilience the market needs.
In light of these developments, the Australian Competition and Consumer Commission (ACCC) needs to closely examine PEXA’s activities to ensure fair competition in the e-conveyancing market.
As this significant shift in the e-conveyancing industry unfolds, it will be crucial to monitor how PEXA’s potential monopoly impacts the market, and how regulatory authorities respond to ensure fair competition and protect consumer interests. For more details on this development, click here.
