Compass Sues Zillow, Alleging ‘Anticompetitive Tactics’ in Home Listings

The lawsuit also accuses real estate brokerages Redfin and eXp Realty of working with Zillow in the alleged tactics.

A 'for sale' sign posted in Washington, on May 19, 2025. Madalina Vasiliu/The Epoch Times

Compass, America’s largest independent real estate brokerage, filed a lawsuit against real estate marketplace Zillow on June 23, accusing the company of using “anticompetitive tactics to protect its monopoly and revenues in violation of the antitrust laws.”

The lawsuit, filed at the District Court, Southern District of New York, said that nearly every house for sale nationwide is listed on Zillow’s home-search platform, making it a “vital, go-to destination for consumers looking to purchase homes.” Zillow generates revenue by referring buyers interested in home tours to its affiliated agents, earning a commission for providing buyer information, according to the lawsuit.

The lawsuit’s focus is Zillow’s Listing Access Standards, which Compass argues is a “Zillow Ban.”

“Simply stated, the Zillow Ban mandates that if a home seller and her agent market a home off Zillow for more than one day, then Zillow and its allies will ban that listing from their search platforms, making the home invisible for many buyers,” said the complaint.

“The Zillow Ban seeks to ensure that all home listings in this country are steered on to its dominant search platform so Zillow can monetize each home listing and protect its monopoly.”

The lawsuit accused Zillow of violating antitrust laws in two ways: by using its monopoly to impose the alleged Zillow Ban, and entering into anti-competitive agreements with home-search competitors like Redfin and eXp Realty to enforce the ban.

The Epoch Times reached out to Zillow, Redfin, and eXp Realty for comment, and did not receive a response by publication time.

The lawsuit argued that the alleged scheme harms Compass’s marketing strategy.

Compass’s 3-Phased Marketing Strategy first presents listings to company agents and their “serious buyers.” Then, the listing is posted on the company’s public home search platform, where it can be accessed by agents and buyers across the United States.

“Houses marketed during the first two phases are not on aggregators like Zillow,” said the lawsuit.

In the third phase, the listing is shared with multiple listing services (MLS) and distributed to aggregators such as Zillow.

Compass said its phased strategy provides sellers benefits such as “a chance to test list prices, experiment with marketing approaches, and gather early feedback,” while posing a “significant threat to Zillow’s home search monopoly.”

The lawsuit alleged that Zillow’s ban scheme was rolled out as a response to Compass’s 3-Phased Marketing Strategy.

Compass argued in the lawsuit that the prospect of not being able to list on Zillow forces sellers to avoid listing on Compass.

Listings Surge

The Compass lawsuit against Zillow comes at a time when home listings have surged over the past year.

A total of $698 billion worth of homes have been put up for sale in the United States, up more than 20 percent compared to a year back, according to a June 2 statement from Redfin. This is the highest ever dollar amount in the company’s records, going back to 2012.

“The total value of U.S. home listings is at an all-time high because of the combination of growing inventory, slowing demand, and increasing home-sale prices,” said the brokerage.

“Housing supply is at a five-year high. There are many more sellers than buyers in the market. The total number of homes on the market nationwide rose 16.7 percent year over year in April.”

The company’s analysis found almost 500,000 more sellers in the housing market than buyers.

While home listings are piling up, the housing market is also facing a dip in builder sentiment, which in June dropped to the third-lowest reading since 2012, the National Association of Home Builders (NAHB) said in a June 17 statement.

NAHB chairman Buddy Hughes said a growing number of builders were moving to reduce prices in a bid to “address affordability concerns and bring hesitant buyers off the fence.”