C
ompass, a major brokerage firm, has filed a 39-page complaint against the Northwest Multiple Listing Service (NWMLS) in U.S. District Court for the Western District of Washington. The lawsuit alleges that NWMLS's policies on pre-marketing and private exclusive listings are anticompetitive and monopolistic, preventing "meaningful competition from gaining traction." Compass claims that these rules affect seller choice, hurt consumers, and prevent it from implementing its 3-phase marketing strategy.

    Compass had spent months trying to work with NWMLS to change the rules but was met with resistance. The brokerage argues that NWMLS's conduct has made it difficult for home sellers in the Seattle area to choose how to market their homes without using a professional real estate broker, as NWMLS has 100% of the brokers in the area.

    The dispute between Compass and NWMLS began in March when Compass launched private listings in defiance of NWMLS rules. The feud escalated with Windermere, a dominant brokerage in the region, being pulled into the battle. Compass CEO Robert Reffkin claimed that Windermere and NWMLS had colluded to prevent Compass from pushing its 3-phase marketing strategy without risk of fines.

    Compass has been critical of NWMLS's board, which it claims is controlled by Windermere. The brokerage alleges that all brokerages with member agents on the NWMLS board are "co-conspirators" with each other and NWMLS. Tabata Perron, a Compass-affiliated board member who resigned in recent weeks, also cited NWMLS's anticompetitive conduct as her reason for leaving.

    The lawsuit follows weeks of attacks by Reffkin against NWMLS via social media posts on Instagram and LinkedIn. Compass had previously launched a website to collect contact information from seller clients for a possible class action against the MLS.