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

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

AJ WongBusiness Member
Real Estate Broker · Oregon & California Coast · Member since 2022 · 834 posts · 696 votes

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? 

Sesemi | STR Brokers powered by Fathom Realty 518 Reviews
0Reply
238 views

Most Popular Reply

Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
1y
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. 
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    how does zillow know that a listing has been taken but not loaded up to MLS.

    I suspect many agents dont take a listing and get them in the computer within 24 hours  U know they are busy etc.

    • AJ WongBusiness Member
      OP
      Real Estate Broker · Oregon & California Coast · Member since 2022 · 834 posts · 696 votes
      1y
      Quote from @Jay Hinrichs:

      how does zillow know that a listing has been taken but not loaded up to MLS.

      I suspect many agents dont take a listing and get them in the computer within 24 hours  U know they are busy etc.


      I think it's from when the listing is scheduled to go live publicly - not when the contract is signed. 

      Compass isn't in Oregon and their argument is ridiculous: "We want to keep it private, but you can't..OR we want to keep it private until we can't sell it and need more exposure." 

      Sesemi | STR Brokers powered by Fathom Realty 518 Reviews
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @AJ Wong:
      Quote from @Jay Hinrichs:

      how does zillow know that a listing has been taken but not loaded up to MLS.

      I suspect many agents dont take a listing and get them in the computer within 24 hours  U know they are busy etc.


      I think it's from when the listing is scheduled to go live publicly - not when the contract is signed. 

      Compass isn't in Oregon and their argument is ridiculous: "We want to keep it private, but you can't..OR we want to keep it private until we can't sell it and need more exposure." 


      well how would zillow even know when its scheduled unless the agents are telling zillow I dont see how they can be privy to this information..
  • AJ WongBusiness Member
    OP
    Real Estate Broker · Oregon & California Coast · Member since 2022 · 834 posts · 696 votes
    1y
    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? 


     Correction in title: Goes into effect today 6/30/2025

    Sesemi | STR Brokers powered by Fathom Realty 518 Reviews
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    1y
    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. 
Join the conversationCreate a free account to reply, vote on answers and follow this thread.