realestate

Real Estate Giant Faces Antitrust Challenge in Zillow Lawsuit

Compass, Zillow face national interest in antitrust lawsuit over "Zillow Ban".

T
he high-profile antitrust lawsuit between Compass and Zillow over the "Zillow Ban" has garnered significant attention in the real estate industry, particularly in Beverly Hills where private or "pocket" listings are often preferred due to concerns about privacy and security. The Courier sought insight from attorney Pooja S. Nair on this case and its implications.

    Compass filed a federal antitrust lawsuit against Zillow in June 2025, challenging the Zillow Ban, which requires homes listed publicly to be entered into an MLS and syndicated to Zillow within one business day. Compass alleges that this ban would make it difficult for home sellers to list their properties outside of Zillow, forcing them onto the platform where Zillow makes money selling leads.

    Compass describes its three-phased marketing strategy, which includes a private exclusive phase available only to Compass agents and a "Coming Soon" phase before listing on MLS. The Zillow Ban would make these early phases obsolete, stripping away customers' ability to test the waters in a curated environment. Compass claims that Zillow's actions are anticompetitive and aim to force all listings onto its platform.

    The lawsuit also alleges that Zillow conspired with Redfin and eXp Realty to adopt the Zillow Ban, violating antitrust laws by leveraging its monopoly power. Compass seeks a judicial declaration that Zillow's conduct violates antitrust laws, an injunction prohibiting the ban, and damages.

    The case is before U.S. District Judge Jeannette A. Vargas in New York, with both sides engaging in expedited discovery and heated debate over the merits of the lawsuit. The evidentiary hearing on Compass' motion for a preliminary injunction is set for November 18, 2025.

    The long-term implications of this case could significantly impact luxury markets like Beverly Hills, where private marketing strategies are often used to protect sellers' privacy. If Zillow prevails, it would reaffirm its authority over industry standards, while a Compass win could preserve its phased strategy and limit Zillow's influence.

    This lawsuit is part of a larger wave of antitrust challenges against digital platforms, with courts and regulators examining whether companies like Google, Amazon, and Apple are misusing their gatekeeper roles to stifle competition. The outcome of this case will be influential in shaping the future of real estate marketing, particularly in luxury markets.

Real estate giant sued by Zillow in antitrust lawsuit, Seattle location involved.