Zillow wants to further question Compass CEO in listings case
The portal asked for another 2-hour deposition following Compass’ acquisition of Anywhere. Separately, Zillow’s hearing request in a copyright case was granted.
Key points:
- In a joint letter filed Oct. 1, Zillow questions Compass' claims of harm from the portal's listing ban given the brokerage's ability to buy Anywhere for $1.6 billion.
- Compass counters that its current financial health is irrelevant, and pushes back on Zillow's requests to further depose Compass' CEO and examine more documents.
- Separately, Zillow submitted a letter in the copyright case filed by CoStar, arguing that Zillow isn't responsible for policing its customers.
- CoStar's CEO clapped back, calling it a “shameful attempt to blame its own customers" and highlighting other recent litigation as evidence that "Zillow disregards the law."
Now that Compass has announced its pending acquisition of major real estate franchisor Anywhere, Zillow is asking the court to allow it to further depose Compass CEO Robert Reffkin and to turn over documents related to the deal.
Also this week, Zillow's request for a hearing in its legal battle with CoStar was granted by the judge in that case.
The latest in the Compass case
In an Oct. 1 letter, Zillow and Compass informed Judge Jeannette A. Vargas of the U.S. District Court for the Southern District of New York that they had reached an "impasse" over Zillow's desire for additional discovery before the judge rules on Compass's request for a preliminary injunction of Zillow's private listings ban.
Reffkin on Zillow's ban: "Compass CEO Robert Reffkin attested that [its three-phased marketing strategy] is 'essential to the future of Compass and its growth,'" Zillow's attorneys noted in the letter.
Compass also claimed Zillow's Listing Access Standards prevent the brokerage "from delivering on that value proposition" and would cause "irreversible" damage to its relationships with agents and clients while causing "uncertainty and confusion" among Compass' investors, Zillow attorneys added.
Testing Compass' claims: Zillow contends that Compass' ability to buy up rival Anywhere Real Estate using $1.6 billion of its own stock indicates both brokerages "believe Compass is in excellent financial health and has strong future growth prospects."
Zillow argues it should therefore be allowed to stress-test Compass' claims and determine if Compass disclosed anything about Zillow's listing standards when pursuing the Anywhere deal that is inconsistent with Compass' claimed damages.
Zillow asked for a court order mandating that Compass turn over the documents within 10 business days and allow a supplemental two-hour deposition of Reffkin about the Anywhere deal to be scheduled on or before October 17.
Compass opposes 'burdensome' requests: In the same letter, Compass pushed back against Zillow's requests, calling them "broad and burdensome," and asserting that "Compass's financial health is irrelevant [to the court's consideration of its preliminary injunction request], as even financially sound companies can be harmed by anticompetitive conduct."
Attorneys for Compass also said Zillow had already deposed Reffkin for four hours and additional time "is unwarranted and only meant to distract Mr. Reffkin from his CEO duties."
Evidence of impacts on listing strategy: Compass maintains that Zillow already has access to publicly-available information about the Anywhere acquisition as well as information Compass turned over about its three-phased marketing strategy.
The letter pointed to a July 2025 board of directors presentation that noted "the percentage of sellers choosing to adopt 3PM has fallen significantly from a high of 39% in April 2025 to only 22% as of July 2025" as a consequence of Zillow's listings ban.
Zillow granted hearing in CoStar case
In a Sept. 30 filing, Zillow asked Judge Edgardo Ramos of the same court for a hearing before filing a motion to dismiss a case lodged by rival CoStar alleging copyright infringement of thousands of CoStar's photos. The judge granted Zillow's request on Oct. 2, scheduling the hearing for Oct. 15.
In its letter to Ramos, Zillow claims CoStar's complaint fails to fulfill requirements to prove its allegations.
Zillow not responsible for uploads, policing customers: Zillow says CoStar has acknowledged that customers uploaded the images in question to Zillow's site, which are then handled via "automated processes" and not curated by Zillow itself.
CoStar's complaint also "incorrectly" suggests Zillow must identify photos with the CoStar watermark, even though the Digital Millennium Copyright Act says service providers don't have to monitor users for infringement, the letter asserts.
No 'direct financial benefit': CoStar does not allege Zillow gained "any direct financial benefit" from its use of the images, Zillow argues in the letter, noting that it "does not charge users to upload images and does not sell images," nor does it "make more money if a listing contains a CoStar photo."
CoStar's Florance responds: In an emailed statement, CoStar CEO and Founder Andy Florance blasted Zillow for what he called a "shameful attempt to blame its own customers for its mass misuse of CoStar's copyrighted photographs."
He pointed out that Zillow has previously been found liable for mass copyright infringement, likely referring to VHT Studios' case against the company, and highlighted several recent cases involving Zillow, including those filed this week by the Federal Trade Commission and several states — evidence, says Florance, "that Zillow disregards the law when it suits its business interests."