Compass Sues Zillow Over Listing Ban, Citing Antitrust Violations and Threat to Market Competition

Real estate company Compass has filed a lawsuit against Zillow, accusing the online property listing giant of violating federal antitrust laws. The dispute centers around a new Zillow rule that bans home listings from appearing on its site if they have already been made public elsewhere more than 24 hours earlier. Compass claims this rule unfairly penalizes sellers and agents who utilize multi-platform marketing strategies, alleging that Zillow is leveraging its dominant market position to restrict competition and consumer choice.

Compass Challenges Zillow’s Listing Rule as Anticompetitive, Coercive, and Consumer Rights Violation

Zillow introduced the new rule in April, with enforcement beginning on May 28. The company justifies the policy as a way to ensure equal access for homebuyers by preventing listings from being hidden behind “velvet ropes” controlled by competing firms. However, Compass argues that this is less about fairness and more about monopolistic control. Compass CEO Robert Reffkin compared Zillow’s actions to Amazon banning sellers for posting products on their own sites first, calling the practice coercive and harmful to consumer rights.

To fight the case, Compass has brought on Ken Dintzer, an antitrust expert who previously led the U.S. government’s lawsuit against Google. Zillow, on the other hand, has dismissed the lawsuit as meritless, maintaining that its policy is grounded in transparency and fairness for consumers. A Zillow spokesperson asserted that limiting public access to listings results in a fragmented market and disadvantages buyers and sellers alike, especially during a period of limited housing inventory and high prices.

Compass Defends Flexible Three-Phase Listing Strategy Amid Zillow Revenue Conflict and Lawsuit

At the heart of the conflict is Compass’ three-tiered approach to marketing home listings. The strategy begins with a “private exclusive” phase where listings are shared only within Compass’ internal platform. This is followed by a “coming soon” listing available publicly on Compass’ website, and finally, full exposure through Multiple Listing Services (MLS) and aggregation platforms like Zillow. Compass defends this model as more flexible and beneficial for sellers, while accusing Zillow of opposing it simply because it limits Zillow’s ability to generate revenue through lead fees in the earlier phases.

Compass, which employs over 33,000 agents, reports that nearly half of its sellers in the first quarter used this three-phase marketing strategy. The company argues that Zillow’s policy disrupts free market competition by forcing sellers into a single distribution model that benefits Zillow’s financial interests. Through its lawsuit, Compass aims to challenge what it sees as monopolistic behavior that undermines innovation, agent autonomy, and consumer choice in the real estate market.