'Zillow Ban' goes into effect tomorrow: Why Compass will lose their lawsuit

[AJ Wong]

As some of you may know, beginning today if agents/brokers do not post their listing to the MLS or publicly within 24 hours - Zillow will effectively 'hide' or ban the listing from the website.

"Compass, the real estate brokerage that sells more houses than any of its competitors in the United States, has sued Zillow, the country’s largest real estate site — in a legal showdown that accuses Zillow of gatekeeping home listings and of breaking federal antitrust laws." - Debra Kamin - New York Times

Personally - I think Compass will lose...convincingly. If broker choose to exclusively market listings to their broker network (effectively attempting to control both sides of the transaction) they are welcome to do so...but Zillow is a private company and can make their own rules. Although they are the dominant digital listing website, there are plenty of others and if representatives elect not to share their listing outside of a 'pocket' network - so be it, but don't argue that Zillow is being anti-trust...if anything I think Compass is..

If there is such an advantage to keeping the transaction 'in house' why are they upset when the listing is kept off of certain websites? Isn't that what Compass is doing to their competitors? Excluding non-Compass brokers (and their clients) from an equal opportunity of investing/purchasing? 

Pocket or whisper listings are legal but only advantageous for specific markets or properties, from my experience unless there is a privacy concern or other rationale - restricting public exposure of any listing rarely benefits the owner. 

What are your thoughts? How will this lawsuit play out? 

[Russell Brazil]

Quote from @AJ Wong:

As some of you may know, beginning today if agents/brokers do not post their listing to the MLS or publicly within 24 hours - Zillow will effectively 'hide' or ban the listing from the website.

"Compass, the real estate brokerage that sells more houses than any of its competitors in the United States, has sued Zillow, the country’s largest real estate site — in a legal showdown that accuses Zillow of gatekeeping home listings and of breaking federal antitrust laws." - Debra Kamin - New York Times

Personally - I think Compass will lose...convincingly. If broker choose to exclusively market listings to their broker network (effectively attempting to control both sides of the transaction) they are welcome to do so...but Zillow is a private company and can make their own rules. Although they are the dominant digital listing website, there are plenty of others and if representatives elect not to share their listing outside of a 'pocket' network - so be it, but don't argue that Zillow is being anti-trust...if anything I think Compass is..

If there is such an advantage to keeping the transaction 'in house' why are they upset when the listing is kept off of certain websites? Isn't that what Compass is doing to their competitors? Excluding non-Compass brokers (and their clients) from an equal opportunity of investing/purchasing? 

Pocket or whisper listings are legal but only advantageous for specific markets or properties, from my experience unless there is a privacy concern or other rationale - restricting public exposure of any listing rarely benefits the owner. 

What are your thoughts? How will this lawsuit play out? 

Actually Zillow cant just make their own rules.

First, they are violating 2 provisions of the Sherman Antitrust Act. Conspiracy to Restrain Trade as well as engaging in a Group Boycott with their co-conspirators.

Second, Zillow receives their listing data through a protocol called IDX, Internet Data Exchange. IDX data is governed by a consent decree that was made between the Department of Justice and the National Association of Realtors.  Zillow choosing not to display certain listings that they receive from the IDX feeds of the MLS is a violation of that consent decree.