C
ompass, a real estate brokerage company, has filed a lawsuit against Zillow over its policy to ban private home listings. Compass claims that Zillow's exclusionary policy is an anticompetitive tactic designed to protect its monopoly and revenues in violation of antitrust laws.

    According to the lawsuit, Zillow bans homes from being listed on its search platforms if they are marketed off-Zillow for more than one day. This policy allegedly aims to steer all home listings onto Zillow's dominant platform, allowing it to monetize each listing and maintain its monopoly.

    Compass alleges that this "Zillow Ban" reduces homeowner choice and prevents rivals from competing against Zillow. The company wants an injunction to prohibit Zillow from enforcing the ban and similar policies, as well as a trial by jury and unspecified damages.

    The lawsuit comes amid a competitive housing market, where sales of previously occupied U.S. homes fell in April due to elevated mortgage rates and rising prices. Existing home sales dropped 0.5% in April, marking the slowest sales pace for that month since 2009. The imbalance between sellers and buyers has also worsened, with nearly 34% more sellers than buyers shopping for a home as of April.

    Compass argues that Zillow's actions are stifling competition and limiting consumer choice, saying "In a free market, competitors' products should rise or fall based on merit, not the whims of a monopolist gatekeeper."