Compass argues that realtors should have the autonomy to market homes independently without being forced to provide listings to Zillow. This often involves a “coming soon” period, allowing sellers to showcase properties before they’re completely ready for market, test interest, and demand without affecting market days or causing price drops.
The legal filing accuses Zillow of utilizing anticompetitive tactics to maintain a monopoly on the market and generate revenue against antitrust laws. Compass claims that Zillow has become the primary hub for homebuyers due to acquiring competitors and leveraging network effects. This allegedly turns Zillow into a tollbooth for agents, grabbing up to 40% of the buyer agent commission for referrals.
Compass founder and CEO, Robert Reffkin, made it clear that this lawsuit is all about safeguarding consumer choice. He emphasized that no single company should have the authority to dictate which agents or listings can participate based on their business model. Consumers should have the freedom to decide how they want to sell their homes.
We’ve got a showdown in the real estate world as two big players are heading for a collision.
Furthermore, Compass accuses Zillow of charging potential buyers for touring listed properties, a practice usually done for free.
Compass, a major player in the brokerage scene, has taken legal action against Zillow in a New York federal court, accusing the online giant of unfair competition practices and breaking antitrust laws.
In April, Zillow argued that everyone should have equal access to information, pointing to the National Association of Realtors’ “clear cooperation” policy, which mandates listing homes on local multiple listing services within 24 hours of public marketing.
For months, Compass has been pushing its online listings like “Private Exclusives” and “Coming Soon,” showcasing thousands of homes exclusively to Compass agents and their clients. Zillow, meanwhile, unveiled a new rule two months ago that any home not listed on their site within 24 hours of going to market would be banned.
The complaint alleges that Zillow is blocking listings that have been promoted elsewhere first, claiming the company is retaliating against rivals with exclusionary policies.
Zillow hasn’t responded to requests for comments on the lawsuit.
This clash between Compass and Zillow has been brewing for some time. Compass has been expanding steadily, notably sealing the deal worth $444 million for Christie’s International Real Estate last December. Rumors were also swirling that Compass was in talks to acquire Berkshire Hathaway’s real estate brokerage business earlier this year.
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Compass counters this by stating that Zillow shouldn’t have the power to ban listings that don’t align with its business model.
