Compass Dismisses Lawsuit Against Zillow

Compass is dropping its lawsuit against Zillow.

Compass sued Zillow in June over its listing access standards, which threatened to ban listings that were not uploaded to its platform within 24 hours of being publicly marketed. Last month, a judge ruled against Compass’ request for a temporary ban on Zillow’s policy.

The decision to drop its lawsuit was a result of Zillow changing its listing access standards, the company said in a release.

“Following Zillow’s announcement yesterday that it will no longer ban homesellers and their real estate professionals for publicly marketing a listing on the Compass family of websites or Redfin.com before marketing on Zillow,” the firm said of its decision.

Zillow’s updated listing standards allow for listings to appear on its website prior to being entered on the MLS. The standards still prohibit listings from appearing on its site that had been part of a private listing network, like one under Compass’ umbrella, that is marketed to consumers.

The change came the same day that Zillow announced a partnership with a number of major brokerages and franchisors, including Keller Williams and REMAX, to display listings on its website before they are put on the Multiple Listing Service under a new offering called Zillow Preview.

Zillow’s announcement of its pre-marketing option came weeks after Compass announced a similar partnership with Redfin, in which Compass will syndicate its “Coming Soon” listings to Redfin.

“Our goal has always been to give homeowners more choice to decide when, where, and how to market their homes,” stated Robert Reffkin, Chairman and CEO of Compass International Holdings. “We are pleased to see that other brokerages are now recognizing the strong consumer demand for more options in how they sell their homes. Homeowners deserve more choices, not fewer choices.”

Zillow did not immediately respond to a request for comment.