C
ompass, a leading real estate company, has filed a lawsuit against Zillow over its new rule requiring listings to be submitted to Multiple Listing Services (MLS) within one day and published on Zillow and other sites. Compass calls this the "Zillow ban" and claims it violates antitrust laws.

    The dispute stems from Zillow's announcement in April that any listing publicly marketed must be submitted to an MLS within 24 hours, or it won't be posted on Zillow. Compass argues that this rule gives Zillow too much power and allows it to create a monopoly by blocking listings that don't comply with its business model.

    Compass CEO Robert Reffkin stated, "This lawsuit is about protecting consumer choice. No one company should have the power to ban agents or listings simply because they don't follow that company's business model." Compass claims it's defending its three-pronged marketing strategy, which includes private exclusive listings and coming soon listings.

    The issue began with the National Association of Realtors' (NAR) Clear Cooperation Policy, which requires realtors to submit a listing to their MLS within one business day. Zillow petitioned NAR in 2024 to strengthen this policy, arguing that it doesn't go far enough. Compass alleges that Zillow conspired with Redfin to enact a similar policy and is now investigating a deal between the two companies.

    Compass also claims that Zillow offered a "financial upside" if it abandoned its new marketing strategy during a recent meeting between executives. A Zillow spokesperson denied these allegations, stating that Compass' claims are unfounded and that they will fight the lawsuit.