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Compass and Zillow Find Common Ground in Discovery Phase of Legal Dispute

By  |  July 30, 2025
Zillow, housing, flipping, buying, selling

Compass and Zillow have reached consensus on several aspects of the expedited discovery process tied to Compass’s recent request for a preliminary injunction, according to a statement filed jointly by both parties. While the two real estate giants remain locked in a legal dispute, the letter—submitted Monday to Judge Jeanette A. Vargas—reflects some common ground as they prepare for the next phase of litigation.

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    The dispute stems from a lawsuit filed by Compass in late June, which challenges Zillow’s listing access standards. The standards in question prohibit property listings from appearing on Zillow if they are not posted to a Multiple Listing Service (MLS) within 24 hours of public marketing. Compass alleges this policy harms competition and disproportionately affects its operations, particularly when listings are marketed as “coming soon” properties. Per a statement from a Compass representative, some of the firm’s listings received violation notices from Zillow despite being added to local MLS systems within the required timeframe—though as “coming soon” entries rather than active listings.

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    As part of the expedited discovery process approved by the court, both parties outlined what types of expert testimony may be introduced. According to the joint letter, expert witnesses may address several topics, including the structure of the real estate industry, Compass’s phased marketing strategy, the implications of Zillow’s policy on market competition, and assessments of market power. They may also offer rebuttals to opposing expert analyses.

    Read more: Zillow Rejects Compass’s Antitrust Claims Amid Listing Policy Dispute

    Both companies have agreed to withdraw certain data-related discovery requests, citing the compressed timeline of the preliminary injunction phase. However, per the joint statement, both Compass and Zillow have reserved the right to revisit those requests later, once the evidentiary hearing phase is complete.

    Compass has stated that its expert discovery will remain narrowly focused on essential issues currently in dispute, including alleged irreparable harm caused by Zillow’s policy. Zillow, for its part, pushed back on this approach. Per the letter, the company argues that allowing expert testimony on irreparable harm is unnecessary and would represent “sandbagging” in the context of the current proceedings.

    Source: Housingwire