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Compass Sues Zillow Over Listing Policy, Citing Anticompetitive Conduct

By  |  June 23, 2025

The growing tension between two real estate industry giants has spilled into court as Compass Inc., one of the nation’s largest residential brokerages, filed a lawsuit against Zillow Group Inc., accusing the online home-search platform of engaging in anticompetitive behavior.

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    Filed Monday in federal court in Manhattan, the complaint centers around Zillow’s upcoming policy change that will restrict certain property listings. According to Bloomberg, Compass claims the move is retaliatory and designed to suppress competition. Specifically, the lawsuit alleges Zillow plans to block listings that have been publicly marketed for more than 24 hours before being uploaded to a local multiple listing service (MLS), a change set to take effect June 30.

    Compass argues the policy unfairly targets its business model, which encourages sellers to first introduce their properties internally to other Compass agents — a strategy that may include a longer “coming soon” marketing phase before a listing is posted more widely. Per Bloomberg, the firm says this approach allows agents to test pricing and build interest without interference from third-party platforms tracking adjustments like price cuts.

    In a statement, Compass CEO Robert Reffkin said, “No one company should have the power to ban agents or listings simply because they don’t follow that company’s business model.”

    Read more: Ninth Circuit Upholds Ruling Against REX in Zillow Antitrust Case

    Zillow, which derives revenue by connecting prospective homebuyers with real estate agents, defends its stance on transparency in listings. The company announced in April that it would begin removing listings from its site if they have been publicly marketed beyond a 24-hour window before hitting the MLS, citing the need for consistent and equal access to housing information.

    This policy aligns with the National Association of Realtors’ “clear cooperation” rule, which similarly requires that any publicly marketed home be listed on the MLS within 24 hours. However, Compass contends Zillow’s actions go beyond industry standards and constitute an abuse of market power, according to Bloomberg.

    The legal battle marks a significant moment in the evolving relationship between traditional brokerages and digital platforms. Compass, which was the largest U.S. residential real estate brokerage last year according to RealTrends, argues that Zillow’s influence on listing practices could have broader implications for how homes are marketed nationwide.

    The case is Compass Inc. v. Zillow Inc., Zillow Group Inc., and Trulia LLC, 25-cv-05201, in the U.S. District Court for the Southern District of New York.

    Source: Bloomberg