C
ompass, a real estate giant, is suing Zillow for allegedly violating antitrust laws with its new rule that bans home listings from its platform if they appear on any other service for more than 24 hours before being posted on Zillow. The rule, implemented in May, aims to ensure fair access to listings for buyers without relying on a single company's control.

    Compass claims the "Zillow ban" is an attempt by Zillow to leverage its market dominance and hobble competition. By posting homes before they appear on Zillow and other sites, Compass seeks to give some clients a competitive advantage. However, Zillow's rule prevents this strategy from working effectively.

    "This lawsuit is about protecting consumer choice," said Compass CEO Robert Reffkin. "No one company should have the power to ban agents or listings simply because they don't follow that company's business model." Compass has hired Ken Dintzer, a partner in the antitrust division of law firm Crowell & Moring, to represent it in the lawsuit.

    Compass is defending its three-pronged marketing strategy for home listings, which includes private exclusive listings on its internal platform and "coming soon" listings on its website. The company claims that Zillow's rule is aimed at preventing Compass from making money by selling leads off listings in earlier phases of its marketing strategy. Almost half of all sellers who signed with Compass relied on this strategy in the first quarter.

    Compass alleges that Zillow's actions are a form of coercion, stifling competition and limiting consumer choice. The company claims that in a free market, competitors' products and strategies should rise or fall based on merit, not the whims of a monopolist like Zillow.