Zillow Hits Back At Compass’ Request To Halt “Zillow Ban”

Zillow issued its first response to the lawsuit from residential giant Compass alleging anticompetitive behavior by the listing platform.

Compass last month filed a motion for a preliminary injunction to halt Zillow’s policy, which requires listings to be submitted to the multiple listing service and Zillow within 24 hours of being publicly marketed.

Compass claimed the policy “destroys” the first two phases of its three-phase marketing strategy, which entails marketing listings off-MLS and without publishing them to platforms like Zillow before syndicating them publicly.

Zillow took issue with Compass’ claims that it has wrought monopoly power or engaged in anticompetitive behavior, saying the brokerage has continued to use its marketing strategy while announcing its own policy to share listings with others, excluding platforms like Zillow.

“Compass should not be allowed to have it both ways by forcing Zillow to share the benefits of its audience while at the same time withholding from Zillow and its customers the benefits of the latest listings,” the response states. “The law does not allow Compass to force such terms onto Zillow.”

Zillow also claimed that Compass has contradicted itself in marketing its listing strategy.

“Compass claims that the Scheme helps sellers do better and increases competition,” the response states. “But it tells buyers the opposite: ‘Maximize your chance of beating out the competition and potentially avoid bidding wars.’”

Instead, Zillow claimed the marketing strategy “benefits only Compass,” and that in fact Zillow “faces irreparable injury from being compelled to assist an alleged competitor in inflicting harm on consumers.”

A spokesperson for Compass responded to Zillow’s claims to reiterate their claim the suit hinged on “about “protecting homeowner choice.”

“No single company should have the power to ban agents or listings because they don’t follow that company’s business model,” said the spokesperson. “That’s not competition—it’s coercion.”

After Compass’ suit dubbed the platform’s policy as the “Zillow Ban,” Zillow also took the opportunity to try its hand at negative branding, calling the brokerage’s marketing strategy its “Hidden Listing Scheme.”

Zillow also shot down allegations that it colluded with Redfin or eXp Realty on implementing its listing policy, claiming that it “has no agreement with Redfin regarding Compass’s listings” and its vertical integration with eXp makes no mention of how Compass’ listings are displayed.

The fight over Compass’ request for a preliminary injunction is only the first battle in what is shaping up to be a grueling legal case that pits two of the industry superpowers against each other in a bid to control how listings are marketed.

Compass’ initial lawsuit came after Zillow announced its listing policy in April. The policy went into effect on June 30.