Compass Sues Zillow Over Private Listings Ban as Real Estate Antitrust Battle Escalates

Key Points

Research suggests Compass is suing Zillow over a policy banning listings not on the MLS within 24 hours of public marketing, escalating a long-standing dispute.
It seems likely that the lawsuit claims Zillow’s actions are anticompetitive, aiming to maintain market dominance, while Zillow defends it as promoting transparency.
The evidence leans toward this being part of an ongoing industry debate over private versus public listings, with both sides having valid points on consumer choice and market fairness.

Background
Compass, a major real estate brokerage, has filed a lawsuit against Zillow, a leading online real estate platform, over Zillow’s new policy set to ban listings not added to the Multiple Listing Service (MLS) within 24 hours of being publicly marketed, effective June 30, 2025. This policy aligns with the National Association of Realtors’ (NAR) Clear Cooperation Policy, aiming for market transparency.

The Lawsuit
Compass alleges Zillow is using “anticompetitive tactics” to protect its market dominance, claiming the policy harms their strategy of offering private exclusive listings first, which they argue benefits sellers with privacy and control. The lawsuit, filed on June 23, 2025, in New York federal court, accuses Zillow of breaking federal antitrust laws and names Redfin as a co-conspirator, though not a defendant

Long-Running Fight
This lawsuit escalates a years-long tension between Compass and Zillow over how real estate listings should be handled. Compass pushes for private listings to give sellers more options, while Zillow advocates for broad, public exposure to ensure fairness and access for all buyers, reflecting differing views on market practices

Comprehensive Analysis: Compass Sues Zillow Over Privately Marketed Listings Bans, Escalating a Long-Running Fight

This note provides a detailed examination of the lawsuit filed by Compass against Zillow on June 23, 2025, regarding Zillow’s policy on privately marketed listings, and the broader context of their ongoing dispute. It explores the specifics of the lawsuit, the underlying industry tensions, and the implications for the real estate market, offering insights for industry stakeholders and analysts.

Context and Market Overview

The US real estate industry has been marked by evolving practices in how properties are listed and marketed, particularly with the rise of digital platforms like Zillow, which boasts about 227 million unique monthly visitors and a database of 160 million properties

Details of the Lawsuit

On June 23, 2025, Compass filed a lawsuit in federal court in Manhattan, alleging that Zillow is engaging in “anticompetitive tactics” and breaking federal antitrust laws by enforcing this policy

The lawsuit also names Redfin as a co-conspirator, though not a defendant, suggesting Compass believes other major players are supporting Zillow’s policy, potentially to maintain market positions

Zillow’s Position and Policy

Zillow defends its policy as implementing the NAR’s Clear Cooperation Policy, which requires listings to be submitted to the MLS within one business day of public marketing to ensure transparency and fairness

Long-Running Fight and Industry Context

This lawsuit escalates a long-standing feud between Compass and Zillow, rooted in differing views on listing practices. Compass has been pushing private listings, arguing they offer sellers benefits like privacy, control, and the ability to test the market without immediate public exposure, appealing to high-net-worth clients and celebrities

The tension has been evident in earlier exchanges, such as Robert Reffkin’s pushback against Zillow’s policy in June 2025, highlighting alternative platforms like Homes.com and Realtor.com

Comparative Analysis

Historically, the real estate industry has seen similar disputes, such as in 2019 when Zillow and Compass settled lawsuits over employee poaching, indicating a pattern of legal battles

Supporting Data Tables

Below are tables summarizing key details of the lawsuit and policy:

Aspect	Details
Lawsuit Filed Date	June 23, 2025
Court Location	Federal court, Manhattan, New York
Compass’s Claim	Zillow’s policy is anticompetitive, breaking antitrust laws
Zillow’s Policy Effective Date	June 30, 2025, with phased rollout starting May 28
Policy Details	Bans listings not on MLS within 24 hours of public marketing
Co-Conspirator Named	Redfin, not a defendant

Company Position	Stance
Compass	Private listings offer privacy, control; Zillow’s policy harms competition
Zillow	Policy ensures transparency, aligns with NAR’s Clear Cooperation Policy

Conclusion

The evidence suggests that Compass’s lawsuit against Zillow, filed on June 23, 2025, is a significant escalation in their long-running dispute over listing practices, with Compass challenging Zillow’s policy banning listings not on the MLS within 24 hours of public marketing as anticompetitive. Zillow defends this as promoting market transparency, aligning with NAR’s Clear Cooperation Policy. This conflict reflects broader industry debates on private versus public listings, with implications for consumer choice, market fairness, and competition in the real estate sector.