Compass Inc. (NYSE: COMP) has filed a lawsuit against Zillow Group (NASDAQ: Z, ZG), accusing the company of trying to maintain a monopoly on digital home listings.
The lawsuit is the latest chapter in the feud between the real estate giants over private listings – Compass promotes its Private Exclusives channel of roughly 7,000 home listings available only to its agents and their buyers, while Zillow has enacted a policy that dictates home listings will be banned from its platform if they run on other sites for more than 24 hours prior to their Zillow posting.
According to combined media reports, the lawsuit was filed this morning in New York federal court. Compass accused Zillow of tactics that “rely on anticompetitive tactics to protect its monopoly and revenues in violation of the antitrust laws.”
“The Zillow Ban seeks to ensure that all home listings in this country are steered on to its dominant search platform so Zillow can monetize each home listing and protect its monopoly,” Compass said in its lawsuit.
The Compass lawsuit cited a similar policy by Redfin (NASDAQ: RDFN), but that company was called a “co-conspirator” and is not a defendant in this matter.
“No one company should have the power to ban agents or listings simply because they don’t follow that company’s business model,” said Compass CEO Robert Reffkin in announcing the lawsuit. “That’s not competition. It’s coercion. Imagine if Amazon banned a seller for offering a product on their own website first. That’s what Zillow is doing in real estate. Consumers should have the right to choose how they sell their homes.”
Zillow did not immediately comment on the lawsuit.
Why isn’t Compass being nailed for their pocket listings while “Clear Cooperation” is still in pay?
Great – not before time
35+ year real estate veteran
What do we think Reffkin intends to do with Compass, as it relates to monopolist practices? Careful with those stones, bro.
To gate keep listings is not in accordance with fiduciary duty to sellers.
The whole idea of “private” or “delayed” listings in unconscionable. Any iteration of “coming soon” is despicable. It hurts the Sellers we have a fiduciary responsibility to as well as defies the very ideal of cooperating brokers. It does not belong in this industry – no matter who wants to implement it.
Agreed!
In New Jersey, we use coming soon but they’re listed, and agents are allowed to schedule showings in advance of the first showing date. The extra time gives more buyers the chance to schedule their showings before homes are snatched up.
Agreed!
Kudos to Zillow! Compass wants people to believe that their sellers don’t want ALL potential buyers to see their listings. We know better.
Baloney. It’s always up to the sellers to decide where they want their home advertised. They decide, not some company.
Zillow should be paying agents for their listing’s
A seller should be able to choose where their home is advertised and the information that is being provided. Zillow has gotten to big for their britches, as well as the antiquated MLS. Sellers and agents deserve better.