Zillow (NASDAQ: Z, ZG) has announced that CoStar Group (NASDAQ: CSGP) declined to renew its API agreement that enables the use of its Matterport 3D home tour on the Zillow and StreetEasy platforms.
Matterport was founded in 2011 and provides a 3D digital twin technology that enables property owners, buyers, and renters to experience properties with immersive accuracy from anywhere in the world. CoStar completed its $1.6 billion acquisition of Matterport earlier this year, at which time CEO Andy Florance declared, “By integrating Matterport’s groundbreaking digital twin technology with our vast property data and online marketplaces, we are creating an unparalleled solution for buyers, sellers, and renters to explore properties with greater depth and insight than ever before.”
The withdrawal of Matterport is the latest volley in the conflict between CoStar and Zillow. In July, CoStar filed a lawsuit that accused Zillow of copyright infringement by publishing over 46,000 of its copyright protected images, with many still bearing the CoStar watermark.
Matterport was one of several different 3D media solutions that was available for use on Zillow’s platforms, including the proprietary Zillow 3D Home.
Update: A CoStar spokesperson contacted Weekly Real Estate News with this statement: “Zillow is intentionally misrepresenting CoStar Group’s and Matterport’s licensing terms. Neither Matterport’s nor CoStar Group’s media licensing terms have changed. While media created by CoStar Group explicitly for use on our platforms is proprietary, Matterport customers can share their Spaces anywhere, including on Zillow. Zillow’s reference to the API agreement is a complete red herring, and unrelated to Matterport’s customers’ ability to share Spaces. Further, Zillow has not been utilizing this feed for years, and they know this.”
The statement continued: “If Zillow is removing Matterport Spaces from its website, that is a decision Zillow made unilaterally to the detriment of their customers. CoStar Group sued Zillow because it was infringing on CoStar Group’s copyrighted photographs, on a massive scale. Having been caught red-handed, Zillow is now playing games to stir up customer confusion and divert attention away from its many lawsuits. In addition to diverting leads and banning listings, this is yet another example of how Zillow is harming agents and consumers.”
Zillow is becoming quite the real estate villain – isn’t it? What’s next? Total monopoly?