Compass has sued Zillow, claiming that the listing giant is breaking antitrust laws with its Zillow Access Standards private listing ban, enacted on May 28.
That ban notably barred any listings that had previously been marketed off-MLS, including many Compass exclusives.
In a federal lawsuit filed with a New York district court on June 23, Compass alleged that its private, off-MLS home search platform is a competitor to Zillow — but that the “monopolist” corporation aims to “ensure that all home listings in this country are steered on to its dominant search platform.”
The lawsuit also claims that with Zillow, sellers don’t have control over how their properties are marketed, a sentiment that’s been a core tenet of anti-clear cooperation rhetoric over the past year.
“Some things just need to be settled in court,” said CEO Robert Reffkin, who took to Facebook to share his shock that more industry figures haven’t pushed back against Zillow’s anti-private listing rules.
“Compass is suing Zillow for abusing its monopoly power to ban homeowners and their agents for marketing homes off Zillow’s website,” Reffkin wrote. “Imagine if Amazon banned a seller for offering a product on their own website first. That’s what Zillow is doing in real estate. Only a monopoly would think they can get away with banning anyone.”
The lawsuit also named Redfin and eXp Realty as “co-conspirators,” claiming their actions have furthered Zillow’s anti-competitive practices.
When contacted for comment, a Zillow spokesperson provided the following statement to Agent Publishing:
“Zillow believes the claims in this lawsuit are unfounded and will vigorously defend against them. At the heart of this issue is a simple principle: When a listing is publicly marketed, it should be accessible to all buyers — across all platforms, including Zillow. Hiding listings creates a fragmented market, limits consumer choice and creates barriers to homeownership, which is bad for buyers, sellers and the industry at large, especially in this inventory and affordability-constrained environment. Our listing access standards are designed to ensure transparency, equal opportunity, and broad visibility for everyone so sellers can maximize price and time to sell and so buyers have access to all available inventory. These practices are widely supported by most brokerages, consumer advocates and fair housing experts, because open access and maximum exposure lead to better outcomes for buyers, sellers and agents alike. Limiting visibility hurts buyers and sellers, disadvantages smaller brokerages, and undermines an open market. Our focus remains on creating a level playing field that serves the best interests of everyone in the home buying and selling journey.”
Last updated June 23, 11:50 a.m. ET.