MLS makes its case for dismissal of Compass lawsuit
Northwest MLS says the April lawsuit should be tossed, arguing in a new filing that the brokerage giant “cannot have it both ways” with listings.
The judge in Compass' lawsuit against Northwest MLS has set a trial date for next June, but the MLS is arguing that the case shouldn't get that far, laying out its case for dismissal in a June 30 filing.
How we got here: In March, Compass decided to move ahead with a private exclusives blitz in NWMLS's coverage area, in defiance of the MLS's rules. NWMLS responded in April by suspending the brokerage's IDX feed for two days. Compass filed suit a week later, arguing that NWMLS is engaging in anticompetitive business practices.
What NWMLS is saying: The request for dismissal calls Compass' allegations "an effort to entrench a free-riding, exclusionary strategy that undermines competition and harms consumers." It also argues that Compass is a longtime member of the MLS that agreed to follow its rules and can't claim a legal right to an exemption.
"Compass cannot have it both ways," the NWMLS filing states. "By demanding access to others' listings while claiming a right to deprive other member brokerages of its own listings, Compass' Complaint confirms the pro-competitive nature of NWMLS' rules."
In addition, the motion seeks to dismiss claims related to Washington state law, arguing that Compass failed to identify any specific contracts or business relationships that NWMLS allegedly interfered with, and that the MLS acted within its rights and rules at all times.
What Compass is saying: Compass argues that NWMLS rules prohibiting pre-marketing and office exclusives limit seller choice, hurt consumers and block the brokerage from employing its marketing strategy in the region — an approach that starts with private exclusives.
In a July 2 statement, Compass said NWMLS' claims are "completely baseless and deliberately misleading." It also pushed back on the notion of "free-riding."
"If NWMLS truly cared about free-riding, it would remove Zillow as a member" because Zillow takes listings without contributing them, Compass said. "In fact, by that same logic, NWMLS itself could be considered the ultimate free-rider," the statement added, because brokerages provide the MLS listings (which it monetizes) and are then charged to access them.
What's next: The judge will consider the motion on July 28.