In court documents, attorneys for Compass allege that Zillow has “sought to rely on anticompetitive tactics to protect its monopoly and revenues in violation of the antitrust laws.”
Real estate brokerage Compass has filed a lawsuit against Zillow, claiming that the popular property-search website refuses to accept listings for homes advertised for sale on other platforms.
According to The Associated Press, the lawsuit was filed earlier this week in U.S. District Court for the Southern District of New York. In court documents, attorneys for Compass allege that Zillow has “sought to rely on anticompetitive tactics to protect its monopoly and revenues in violation of the antitrust laws.”
Compass also claims that Zillow maintains exclusionary policies: if a homeowner and real estate agent market a property off Zillow for more than one day, Zillow and its partners will typically to relist the home. This so-called prohibition extends across several platforms, including Zillow, Redfin, and eXp Realty.
“The Zillow Ban seeks to ensure that all home listings in this country are steered on to its dominant search platform so Zillow can monetize each home listing and protect its monopoly,” Compass alleges.
Compass also says that this policy was specifically enacted to dissuade Zillow’s rivals from competition.
“In a free and competitive market, competitors’ products and strategies should rise and fall on merit—not the whims of a monopolist gatekeeper like Zillow,” the lawsuit states.
The Associated Press notes that, as a general rule, home-sellers benefit from having their property advertised on as many search engines as possible, maximizing their reach to prospective buyers.
“This lawsuit is about protecting consumer choice,” Compass CEO Robert Reffkin said in a statement. “No one company should have the power to ban agents or listings simply because they don’t follow that company’s business model.”
“That’s not competition,” he added. “It’s coercion. Imagine if Amazon banned a seller for offering a product on their own website first. That’s what Zillow is doing in real estate. Consumers should have the right to choose how they sell their homes.”
Compass is now seeing an injunction to prevent Zillow from enforcing its “ban” and implementing any similar policies at a later date. The lawsuit says that Compass is also seeking a jury trial and unspecified damages.
Zillow, for its part, has said that its rival’s claims are meritless.
“Our focus remains on creating a level playing field that serves the best interests of everyone in the home buying and selling journey,” a Zillow spokesperson said in a statement.
“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,” a Zillow spokesperson told CBS News in an emailed statement. “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.”
Sources
Compass files lawsuit against Zillow over home listings policy
Compass sues Zillow over its “Zillow ban,” alleging antitrust breach
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