Zillow Rejects Compass’s Antitrust Claims Amid Listing Policy Dispute

In a court filing submitted Thursday in Manhattan federal court, Seattle-based Zillow asked a judge to deny Compass’s motion for a preliminary injunction that would compel Zillow to display certain home listings that have not been made available through standard channels. According to Bloomberg, the request follows a lawsuit brought by Compass last month, accusing Zillow of attempting to control how residential properties are listed and marketed across the U.S.

The dispute centers around Compass’s strategy of pre-marketing homes internally before sharing them with the broader public via multiple-listing services (MLS) or platforms like Zillow. Compass, headquartered in New York and recognized as the largest residential real estate brokerage in the country, has defended the practice as a way for agents to gauge buyer interest and test pricing privately.

Related: Compass Sues Zillow Over Listing Policy, Citing Anticompetitive Conduct

Zillow, however, argues that such tactics undermine market transparency. As noted by Bloomberg, the company instituted a new rule blocking listings from appearing on its site if they have been publicly marketed elsewhere for more than 24 hours without being posted to an MLS. The intent, according to Zillow, is to ensure fairness and open access to information for both buyers and agents.

In its latest filing, Zillow flatly denied that its policy constitutes unfair competition. The company asserted that Compass has no legal right to dictate how Zillow operates its platform, emphasizing that its approach prioritizes transparency in real estate transactions. Per Bloomberg, Zillow stated it has consistently promoted open access to home information, in contrast to Compass’s more restricted model.

The broader context of the dispute includes industry-wide efforts to enforce uniform listing practices. A 2019 policy by the National Association of Realtors mandated that agents must list homes on MLS platforms within 24 hours of beginning public marketing. However, Compass’s current marketing model appears to challenge that framework by introducing delays that keep listings visible only within its own ecosystem for extended periods.

The case, officially titled Compass Inc. v Zillow Inc., Zillow Group Inc. and Trulia LLC, is being heard in the U.S. District Court for the Southern District of New York.

Source: Bloomberg