Compass (COMP) has filed a lawsuit against Zillow (Z, ZG), accusing the real estate listings giant of anticompetitive behavior after Zillow barred certain privately marketed properties from appearing on its platform. The move intensifies a long-running industry clash over the treatment of semi-secret home listings.
In the lawsuit, filed Monday in New York, Compass contends that Zillow’s decision violates antitrust laws, stating it “was adopted to harm a competitive threat, it eliminates a new and innovative business model that creates competitive differentiation in the market, and it reduces homeowner choice.”
“The Zillow Ban is designed to make it hard, indeed nearly impossible, for home sellers to sell their home outside of Zillow, in an effort to force all listings to be on Zillow where Zillow makes money selling leads off the homeowners’ listings,” the lawsuit says.
Both Zillow and Compass have taken strong stances in the broader debate surrounding the Clear Cooperation Policy — a National Association of Realtors (NAR) rule intended to curtail so-called “pocket” or “off-market” listings, where homes are marketed to select buyers before being shared publicly.
“Zillow believes the claims in this lawsuit are unfounded and will vigorously defend against them,” a Zillow spokesperson said. “At the heart of this issue is a simple principle: when a listing is publicly marketed, it should be accessible to all buyers — across all platforms, including Zillow.”
Zillow, which generates revenue through advertising on its platform, has maintained that increased transparency benefits sellers by yielding higher prices, fostering buyer trust, and supporting compliance with fair housing laws. Meanwhile, Compass promotes its access to off-market inventory and private-first marketing strategy, arguing that such flexibility provides more options for both buyers and sellers.
While most home sellers aim to reach the broadest audience possible, some — particularly in the luxury segment — favor off-market listings for reasons such as privacy or the desire to test pricing discreetly, without visible records of price reductions or days on the market.
In April, the NAR introduced a new rule allowing sellers to delay widespread online marketing of their homes, while still requiring agents to place properties on multiple listing services (MLS) within one day of public marketing. Following that change, Zillow announced it would block listings initially shared only with select buyers — a move that effectively excluded Compass properties, which typically follow a “3 Phased Marketing Strategy.” Under that model, homes are first shown exclusively to Compass agents, then listed as “Coming Soon” on Compass’s website, and finally added to the MLS and third-party platforms.
In its complaint, Compass noted that 94% of its listings last year were eventually made widely available on the MLS and sites like Zillow, but emphasized that many sellers still value its staged approach.
“Zillow is an unfriendly place for home listings because it tracks metrics like time on market and price cuts and provides estimates of home values and climate risks that may not be accurate,” the lawsuit said.
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