Compass challenges Zillow's listing policies in court

In April 2025, Compass, a major real estate brokerage based in the United States, initiated legal action against Zillow in the U.S. District Court for the Southern District of New York. The lawsuit accuses Zillow of implementing exclusionary practices that violate federal antitrust laws through a policy referred to as the 'Zillow ban.' This policy mandates that if a home is marketed elsewhere for over 24 hours, it will not be listed on Zillow, impeding competitors and limiting consumer choice. Since its implementation on May 28, Zillow's rule has drawn criticism from numerous industry players who argue that such measures counteract healthy market competition. Compass has outlined a three-phased marketing strategy that includes 'private exclusive' listings and 'coming soon' advertising before properties reach broader markets, including Zillow. This strategy aims to enhance clients' potential for competition; however, Zillow's new policy undermines this approach by enforcing a strict timeline for listing submissions. Robert Reffkin, CEO of Compass, stated that no company should hold the power to dictate real estate marketing practices to the detriment of consumer choice. The lawsuit seeks both an injunction against the enforcement of Zillow's rules and damages for perceived monopolistic practices. Zillow, a prominent online real estate platform, defended its decision by asserting that it is essential to provide all buyers with equal access to listings, avoiding the creation of a fragmented market. This legal battle is not only centered on the rights of brokerage firms but also speaks directly to the broader implications of competition in the housing market, especially amid rising mortgage rates and decreased affordability. As the situation unfolds, it could set important precedents regarding real estate marketing practices and platform monopolization. The legal actions initiated by Compass reveal significant tensions in the real estate sector shaped by evolving market dynamics and technology usage. The lawsuit highlights issues that many feel threaten to fracture competition within the industry, impacting how consumers engage with real estate listings. Responses to these emerging challenges will likely shape the future of online property listing practices, making it a crucial case to watch for all stakeholders involved in the real estate market.