Zillow pulls Matterport tours from listings, blames CoStar 

The ongoing clashes between Zillow and CoStar took another turn Monday, this time over the virtual touring technology CoStar acquired earlier this year.

Zillow announced on Oct. 20 that it was pulling Matterport 3D tours — also known as Matterport Spaces — from its Zillow.com and StreetEasy sites due to alleged usage restrictions, a move first reported by Inman.

CoStar is trying to 'wall off data,' Zillow claims

"CoStar recently elected not to renew its Matterport API agreement with Zillow. It also changed its terms of service, which restrict the use of Matterport 3D virtual tours," Zillow said in an emailed statement. "Due to CoStar's decision to restrict its content, Zillow removed Matterport 3D virtual tours from listings on our sites."

The statement characterized the restriction as an effort "to wall off data and restrict how real estate professionals use the content they pay for," noting that Zillow's 3D Home tool "can be used both on and beyond our platforms."

While only a small percentage of listings on Zillow sites include Matterport tours, agents may now need to use a different tool to capture 3D tours for use on Zillow. Along with Zillow 3D Home, there are several other third-party options available in the market.

Zillow 'intentionally misrepresenting' T&Cs?

In response, a CoStar spokesperson said Zillow is "intentionally misrepresenting" its terms. 

"Neither Matterport's nor CoStar Group's media licensing terms have changed. While media created by CoStar Group explicitly for use on our platforms is proprietary, Matterport customers can share their Spaces anywhere, including on Zillow," the statement said.

CoStar last updated its terms and conditions on media rights on Sept. 29. The T&Cs state that "CoStar Group Media may not be used or displayed on any third party platforms, websites, or listing services that compete with CoStar Group's products and services," but they do not mention restrictions on the use of Matterport tours specifically.

"If Zillow is removing Matterport Spaces from its website, that is a decision Zillow made unilaterally to the detriment of their customers," according to the CoStar spokesperson.

CoStar CEO said Matterport acquisition wouldn't restrict use

In April 2024, CoStar announced its plans to acquire Matterport for an estimated $1.6 billion.

Soon after the acquisition announcement, CoStar Founder and CEO Andy Florance told Real Estate News that Matterport tours could still be used on non-CoStar sites, noting that other home search portals including Redfin and Realtor.com used the technology. 

"We have an interest in getting the biggest training model possible — the bigger your model is, the more intelligent it is, so we want to open it up to the whole world," Florance said in the May 2024 interview. The benefit for CoStar, he added, is that "in a world where we drive more digital twins, we will get a solid share of that."

Real Estate News has reached out to Redfin and Realtor.com for comment.

A summer of disputes

The two home search giants have been exchanging blows for months. In addition to the Matterport controversy, the companies are entangled in litigation involving potential copyright infringement and have traded barbs over listing standards. 

In July, CoStar sued Zillow over its rival's alleged use of more than 46,000 copyrighted photos. Although Zillow began removing the photos in question in September, the portals have continued to make dueling accusations in court. 

In its most recent statement, CoStar said the Matterport issue is unrelated to that lawsuit.

"CoStar Group sued Zillow because it was infringing on CoStar Group's copyrighted photographs, on a massive scale. Having been caught red-handed, Zillow is now playing games to stir up customer confusion and divert attention away from its many lawsuits," according to the CoStar Group spokesperson.

Prior to the lawsuit, Florance was also vocal in his opposition to Zillow's recent move to bar listings that are publicly marketed but not widely available to consumers.