C
ompass, a major US residential real estate brokerage firm, has filed a 60-page complaint against Zillow in Manhattan federal court. The complaint alleges that Zillow is unfairly blocking homes listed elsewhere from being featured on its platform. This "Zillow Ban" allegedly aims to steer all home listings onto Zillow's dominant search platform for profit and to protect its monopoly.

    According to Compass, this practice stifles competition and consumer choice. "In a free market, competitors' products should rise or fall based on merit, not the whims of a monopolist like Zillow," the complaint states. Compass CEO Robert Reffkin said in a statement that the lawsuit is about protecting consumer choice and preventing coercion by one company.

    Compass seeks an injunction against Zillow to change its practices and monetary damages. Zillow has dismissed Compass' claims as "unfounded" and vowed to defend itself vigorously. A Zillow spokesperson argued that publicly marketed listings should be accessible across all platforms, including their own app. The company sees hiding listings as creating a fragmented market, limiting consumer choice, and hindering homeownership, particularly in areas with inventory and affordability constraints.