C
ompass filed an antitrust lawsuit against the Northwest Multiple Listing Service (NWMLS) on Friday, alleging violations of the Sherman Act and the Washington Consumer Protection Act. The suit claims that NWMLS's policy prohibiting private exclusive listings is the most restrictive in the country, and that it has prevented any meaningful competition by enforcing rules that force homebuyers to use its platform.

    Compass CEO Robert Reffkin stated that the company is proud to support homeowners who want the freedom to choose how their homes are sold. However, industry experts have expressed skepticism about Compass's claims. Robert Potashnick, co-founder of Real Estate Intelligence Agency, accused Compass of intentionally violating NWMLS rules and treating fines as "parking tickets."

    Tanya Monestier, a University of Buffalo law professor, described the complaint as a "whiny diatribe" that reads like a press release for Compass's marketing plan. Eric Johnson, CEO of Mission Realty Advisors, countered that the lawsuit is about giving homeowners choice in how their homes are sold, rather than Compass not getting its way.

    Windermere Real Estate Services was called out by name in the suit as a co-conspirator due to several executives from Windermere franchises serving on the NWMLS board. However, Windermere President OB Jacobi disputed this claim, stating that Windermere is a franchisor and not a brokerage.

    Industry experts have weighed in on how the case may play out in court. Paul Rogers, a law professor at Southern Methodist University's Dedman School of Law, said that Compass will need to prove that NWMLS is a monopoly and engaging in exclusionary conduct that harms consumers and competition. James Dwiggins, co-CEO of NextHome, warned that promoting private or exclusive listings could lead to violations of steering, incentive, fiduciary, and fair housing laws.

    Saul Klein, CEO of the San Diego MLS, noted that the case highlights the tension between innovative business models and established cooperative principles in the real estate industry. The outcome of the lawsuit could have significant implications for consumer choice, industry disruption, and regulatory precedent.