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A federal judge has rejected Compass's attempt to force Zillow to list more homes on its platform, ruling that Compass is unlikely to prove antitrust violations. Compass had accused Zillow of creating a monopoly by restricting home listings and colluding with Redfin. The court found no direct evidence of an agreement and concluded Zillow's market influence does not prevent buyers from using other platforms. Zillow called the decision a clear victory, while Compass confirmed it would continue pursuing its legal claims.
A U.S. federal judge has turned down Compass's request for an injunction that would have required Zillow to list additional homes on its real estate platform. Compass, the largest residential brokerage in the U.S., had claimed Zillow violated antitrust laws by limiting listings marketed privately for more than a business day and allegedly colluding with Redfin to keep certain homes off the platform. This practice was referred to by Compass as the Zillow ban. Advertisement
In a detailed 50-page ruling, U.S. District Judge Jeannette Vargas in Manhattan stated that Compass was unlikely to succeed on the merits of its case, making a preliminary injunction unnecessary. The court found no clear evidence of an anticompetitive agreement between Zillow and Redfin and did not conclude that Zillow had monopolized online home listings, even if Compass's estimate of Zillow controlling 50-66% of the market was considered.
Zillow, headquartered in Seattle, maintains a database of roughly 165 million homes and attracted an average of 250 million unique visitors per month in the last year's third quarter. Compass CEO Robert Reffkin emphasized that the lawsuit is ongoing and that the company remains committed to protecting its agents from potential market restrictions. Zillow described the ruling as a clear victory for the company, buyers, and brokers, noting that limiting listings to private networks could worsen housing affordability issues.
Judge Vargas suggested that Zillow's and Redfin's actions were more likely independent responses to a new National Association of Realtors policy and the growth of private listing networks, rather than an attempt to monopolize the market. The court also noted that Zillow's brand recognition helps its market share but does not prevent buyers from searching other platforms at little or no cost.
Both Zillow and Redfin face additional litigation from the U.S. Federal Trade Commission and five states, alleging collusion to limit competition in online rental listings. Following the ruling, Zillow shares rose 2.7%, while Compass shares gained 2.4% in afternoon trading.
Source Reuters
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