Compass Over Market Control Sues Real Estate Board Of NY

Compass sued the Real Estate Board of New York alleging that the trade group conspired with traditional brokerages to thwart competition from upstarts by blocking agents from joining new firms, reported Bloomberg.

The Softbank-backed real estate brokerage, which filed for an initial public offering this month, alleges that Rebny and established brokerages are seeking to “smother” competition from upstarts “to preserve the market’s status quo, their business models, and their dominance of New York City residential real estate sales.”

The lawsuit follows one this week against Zillow Group and marks the latest antitrust accusation against the residential brokerage business and its traditional structure. The National Association of Realtors last year resolved Justice Department claims that it adopted rules that reduced competition and harmed home buyers and sellers.

“Wielding their control over access to local property listings like a club, REBNY and its co-conspirators have thwarted and continue to seek to thwart competitors who challenge their methods and dominance,” Compass said in the suit, filed Friday in federal court in Manhattan.

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