Compass Stakes Legal Claim Against Zillow’s “Zillow Ban”—High Stakes in Real Estate Listings

In a move that could significantly reshape the real estate listing landscape, Compass filed a federal antitrust lawsuit on June 23, 2025, against Zillow in the Southern District of New York. The lawsuit accuses Zillow of monopolistic behavior through the implementation of a controversial new policy known as the “Zillow Ban.”

At the heart of the dispute is Zillow’s requirement that all real estate listings be submitted to a multiple listing service (MLS) and then syndicated to Zillow and affiliated platforms—including Trulia, Redfin, and eXp Realty—within one business day of public marketing. Compass argues that the policy is designed to suppress competition, particularly from brokerages that market listings internally through “private exclusives” before they hit the public MLS. Compass CEO Robert Reffkin condemned the policy as an anti-competitive tactic that limits seller choice and stifles innovation. “This is coercion, not competition,” Reffkin said, asserting that the rule penalizes brokers who use alternative strategies to market homes and disadvantages consumers who prefer privacy or targeted exposure.

Zillow, on the other hand, has defended the policy as a transparency safeguard that ensures all buyers get equal access to newly listed homes. The company maintains that delayed public listings create an unfair playing field and could lead to consumer distrust in digital search tools.

The lawsuit also names Redfin and eXp Realty as co-conspirators, alleging they coordinated with Zillow in setting these listing restrictions. Compass seeks injunctive relief to block enforcement of the policy, a jury trial, and financial damages for alleged harm. The legal challenge arrives as the June 30 implementation deadline for Zillow’s new rule approaches, putting additional pressure on brokerages that rely on private marketing periods. Industry watchers say the case could set important precedents for how digital platforms interact with brokerages—and who controls access to listing data in an increasingly competitive and tech-driven market. If successful, Compass’s legal action may rein in platform dominance and reassert broker autonomy in the digital listing process.

References

Frankel, A. (2025, June 23). Compass sues Zillow for allegedly stifling competition for home listings. Reuters. https://www.reuters.com/legal/litigation/compass-sues-zillow-allegedly-stifling-competition-home-listings-2025-06-23/

Business Insider. (2025, June 23). Compass sues Zillow over new ‘Zillow Ban’ policy. https://www.businessinsider.com/compass-zillow-lawsuit-homebuyers-search-listing-2025-6

Associated Press. (2025, June 23). Compass files antitrust lawsuit against Zillow. https://apnews.com/article/compass-zillow-real-estate-mortgage-703ed6fe67f1dca6f9dce01c2f279a2e

The Guardian. (2025, June 23). Compass sues Zillow over alleged anticompetitive practices. https://www.theguardian.com/us-news/2025/jun/23/compass-sues-zillow-ban