Zillow has responded forcefully to Compass’ lawsuit over its new listing access standards, accusing the brokerage of running a “Hidden Listing Scheme” designed to reduce competition and limit transparency.
In a new legal brief, Zillow asked the court to deny Compass’ request for a preliminary injunction that would block the enforcement of its updated listing standards, which prohibit privately marketed listings from appearing on the portal.
“Compass has developed a three-phase Hidden Listing Scheme, through which it can control consumers’ access to home listings, reduce competition, and increase commissions,” the filing states.
Zillow specifically referenced Compass’ three-stage marketing process – private exclusive, coming soon, and then public listing – as the basis of its claim.
Allegations of “double-speak”
In reporting the case, Inman said Zillow’s filing also alleges that Compass engages in contradictory messaging in its marketing efforts.
“Compass uses double-speak to promote [its Hidden Listing Scheme],” the brief says.
“Compass claims that the Scheme helps sellers do better and increases competition. But it tells buyers the opposite: ‘Maximise your chance of beating out the competition and potentially avoid bidding wars.’
Compass also claims that the Scheme helps sellers generate ‘demand among serious buyers’ yet concedes that most homes sell in Phase Three. And when a listing is published in Phase Three, the ‘days on market’ and price history are a blank slate, misleading buyers.”
Zillow argued that allowing Compass to continue its current practices would undermine listing transparency and consumer trust.
“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 brief continues.
“The law does not allow Compass to force such terms on to Zillow, and the motion should be denied.”
Rebutting Compass’ Claims
In its response, Zillow addressed and rejected each of Compass’ core allegations, including claims of antitrust violations. The company argued that:
- It has no legal obligation to do business with Compass.
- It does not hold monopoly power, citing active competition from Redfin, Realtor.com, and others.
- It has not conspired with any other companies to exclude Compass.
- Compass lacks standing to claim antitrust injury, as the alleged harm pertains only to its own brokerage.
- The injunction request is not urgent, given Compass waited nearly three months to file it.
Zillow also maintained that its listing standards are pro-competitive and designed to protect the integrity of its platform.
“While Compass has been waging a campaign against market transparency to the detriment of consumers and agents, Zillow, by contrast, has a long history of providing transparency and equal access to real estate information, to the benefit of consumers and agents,” a Zillow spokesperson said in a statement.
“We will not waver in that commitment. Their motion gets both the facts and the law wrong, and we will continue to defend against it to ensure that the integrity of a fair and competitive real estate marketplace remains intact.”
The dispute between Zillow and Compass is taking place amid growing industry debate over private listings, data access, and the role of portals. Compass initially sued Zillow in June, alleging the platform’s listing standards were exclusionary and anticompetitive.
This new court filing signals that Zillow intends to defend its policies vigorously while criticising what it describes as Compass’ attempt to benefit from Zillow’s traffic without providing full listing access.
The legal battle also comes as other industry players weigh in. On Wednesday, CoStar CEO Andy Florance published a LinkedIn post criticising Zillow’s listing practices, accusing the portal of “taking your clients right out of your hands” and questioning its lead-selling model and approach to FSBO listings.
The case continues. A ruling on the preliminary injunction request is expected in the coming weeks.
