Real Estate Broker Compass Accuses Zillow of ‘Anticompetitive’ Behavior

Real estate brokerage Compass has reportedly sued Zillow for its ban on private home listings.

The suit, filed Monday (June 23) in federal court in Manhattan, accuses Zillow of employing “anticompetitive tactics to protect its monopoly and revenues in violation of the antitrust laws,” the Associated Press (AP) reported.

According to the report, Compass alleges that Zillow has instituted an exclusionary policy that says if home sellers and their real estate agent market their property on sites other than Zillow for more than one day, Zillow and its partner companies Redfin and eXp Realty will block that home from being listed on their search platforms.

The report added that Compass is seeking an injunction that would bar Zillow from implementing and enforcing its “Zillow Ban,” while also asking for a trial by jury and unspecified damages.

A Zillow spokesperson told the AP the company believes the suit’s claims are unfounded and that it will defend in court.

The AP report noted that the always-competitive housing market has become more intense recently. The National Association of Realtors reported last month that sales of previously occupied U.S. homes declined in April, with higher mortgage rates and rising prices turning off prospective homebuyers in what would normally be the busiest time of the year.

“The general sentiment is that people are just nervous,” Nick Friedman, president of homes at HomeLight, told PYMNTS in May. “They don’t know what’s going to happen next.”

That belief has split buyer behavior into two camps: those scrambling to secure a home before conditions get worse and those holding off on homeownership altogether.

“Some are thinking it’s worth getting into a home now and building equity earlier rather than later,” Friedman said. “The other side is saying, ‘I don’t even think I can afford it right now — and if I lose my job, I definitely can’t.’”

That sense of economic unease was at the center  of a survey of 109 top lenders across the United States, including CrossCountry, Fairway and The Loan Store. The data showed that 63% of loan officers said the U.S. is headed toward a recession, a statistic that has immediate implications for buyer psychology and lender strategy.

“Amid the chaos, some firms are finding ways to turn adversity into advantage,” PYMNTS wrote. “Buyers, sellers, lenders and agents are recalibrating quickly, propelled by urgency, data and technology.”