Z
illow is under pressure from a trio of lawsuits and a rival’s aggressive expansion. The FTC sued Zillow and Redfin for a $100 million partnership that allegedly duplicated Zillow’s listings and stifled competition. CoStar claims Zillow used 46,000 of its photos without permission, seeking over $1 billion in damages. A class‑action suit accuses Zillow of inflating real‑estate costs by steering buyers toward agents who pay up to 40 % of commissions to the platform. Zillow denies each claim, arguing the arrangements benefit renters and sellers alike.

    Meanwhile, Compass announced a $1.6 billion purchase of Anywhere Real Estate, adding roughly 216,000 agents and 24 % of U.S. sales volume to its portfolio. The deal could give Compass a dominant presence in cities such as San Francisco, New York, and Washington, D.C., where the combined brands could control up to 50 % of local markets. Compass’s CEO, Robert Reffkin, promotes a “three‑phased marketing” model: homes first appear on Compass’s website, then on the MLS, and finally on public portals. The strategy lets sellers test pricing and keep sensitive data private until they choose to release it.

    Zillow responded in June by banning listings that had been publicly advertised for more than one business day without MLS exposure. Compass sued Zillow, claiming the ban abused monopoly power. Recent analysis shows Compass still maintains over 8,000 exclusive listings, suggesting the ban has had limited impact. The upcoming Anywhere acquisition may further expand Compass’s walled garden.

    Industry observers note that while exclusive inventories could reshape the market, sellers and agents traditionally list on the MLS, which feeds Zillow and other portals. A Citizens Bank study projects Zillow could lose about 1 % of listings by 2027, yet still remain the dominant destination for buyers. The real‑estate sector may evolve into a streaming‑style competition, but unlike Hollywood, sellers cannot be forced to keep homes private; they can only choose to package and sell them through a brokerage’s platform.

    For buyers, the lesson is to browse multiple sites and consider agents who can access hidden listings. Sellers should weigh the benefits of exclusive marketing against broader exposure. Zillow’s dominance remains intact, but Compass’s growing influence and the legal challenges ahead could alter the landscape in the coming years.