Z
illow has filed a detailed defense of its listing rules, pushing back on Compass' lawsuit and arguing that the brokerage's claims are focused on protecting its own interests rather than those of consumers. The company asserts that it is not required to change its listing standards simply because they conflict with another company's strategy.
Compass had requested a preliminary injunction against Zillow's policy, which blocks listings from appearing on Zillow or Trulia if they've been publicly marketed but not shared with Zillow or an MLS within one business day. However, Zillow argues that this request is unfounded and that its policy is designed to promote transparency and equal access to real estate information.
Zillow has included declarations from top executives in its filing, which outline conversations with Redfin and eXp, two brokerages that support the policy. These conversations are characterized as routine and not indicative of a conspiracy. In fact, Zillow CEO Jeremy Wacksman states that Redfin's CEO was notified of the Listing Access Standards just before they were publicly announced and expressed understanding and likely adoption of similar standards.
Zillow has also included a contract with eXp in its filing, which emphasizes that the deal "has nothing to do with Compass." The company argues that while Compass is waging a campaign against market transparency, Zillow remains committed to providing equal access to real estate information.
In response to Compass' claims of a monopoly, Zillow asserts that strong traffic does not equal market power. Consumers use many sites, and Compass continues to grow, the filing notes. Zillow says it is directly responsible for fewer than 5% of total home sale transactions in the United States.
Zillow's listing standards work as follows: agents who have listings deemed out of compliance will receive a notification from the company. Starting June 30, an agent's third non-compliant listing and any subsequent non-compliant listings will be blocked from Zillow and Trulia for the life of the listing agreement between that listing broker and seller.
The dispute has multiple fronts, with Compass CEO Robert Reffkin fighting for private exclusives in various regions, including Seattle, California, and Chicago.
