Compass is suing Zillow, alleging that the online real estate platform is violating antitrust laws with its new rule that prohibits listings from being posted on Zillow if they appear on other services for more than 24 hours. This rule, referred to as the “Zillow Ban,” was implemented on May 28 and aims to ensure access to listings for all buyers. Compass argues that this restriction limits competition and consumer choices. CEO Robert Lefkin criticized Zillow for imposing barriers similar to how a monopolistic company would operate.
Compass has enlisted Ken Dintzer, an antitrust expert, to represent them in the lawsuit. Zillow has dismissed Compass’s claims as baseless, asserting that public listings should be accessible to all platforms to avoid hidden listings that limit consumer options.
The lawsuit also defends Compass’s three marketing strategies, which involve providing exclusive listings internally, offering a “coming soon” list on its website, and using multiple listing services (MLS) to distribute properties. Compass argues that Zillow’s restriction undermines competition by locking consumers into its ecosystem and preventing them from accessing various strategies and services.
Overall, the conflict highlights the tensions between traditional real estate practices and the evolving landscape dominated by major online platforms like Zillow.
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