Zillow can continue enforcing private listing ban, judge rules
In a Feb. 6 ruling, a judge denied Compass’ injunction request, citing insufficient evidence of irreparable harm and skepticism of conspiracy, monopoly claims.
Zillow can continue to enforce its listing policies, a judge ruled today, notching a win for the search portal as its legal battle with Compass continues.
In her Feb. 6 ruling, Judge Jeannette Vargas of the U.S. District Court for the Southern District of New York denied an injunction request filed by Compass on June 27 asking the court to block enforcement of Zillow's listing access standards while litigation between the companies plays out.
How we got here: Zillow announced new rules in April barring listings that had been publicly marketed but not made widely available via the MLS or IDX feeds, with enforcement of the ban to begin at the end of June. A week before that deadline, Compass sued Zillow over the policy, claiming the portal was "abusing its monopoly power." Days later, the brokerage filed a preliminary injunction motion with the court.
At a preliminary injunction hearing in November, attorneys for the two real estate giants — along with the companies' leaders — traded barbs throughout four days of statements and testimony. Compass focused on Zillow's market dominance and an alleged conspiracy with Redfin, while Zillow's legal team noted that the search portal can choose what listings to publish and dismissed claims of a Compass "boycott."
A lack of evidence: In a 50-page opinion, Vargas said Compass "has not shown a likelihood of success on the merits" to consider the questions of whether the policy causes "irreparable harm" — something Compass claimed during the hearing.
The injunction motion relied heavily on suggestions that Zillow and Redfin entered into an illegal agreement to put the listings policy in place, but Vargas concluded that there was no direct evidence of such an agreement, adding that charges of a Zillow-Redfin "quid pro quo" were merely speculative.
The judge was also skeptical about Compass' claim that Zillow had monopoly power, noting that brokerages have other ways to market their listings apart from using Zillow.
What Compass had to say: "Today's decision is not a loss," Compass CEO Robert Reffkin said in a statement, since the lawsuit will continue to move forward.
"With agents being our clients, we have an obligation to protect our agents from Zillow, which explicitly stated they are trying to 'punish the agent,'" Reffkin added.
What Zillow had to say: Zillow, on the other hand, portrayed the ruling as not just a victory for the company, but for consumers and the real estate industry at large.
"Zillow believes everyone deserves equal access to the same real estate information at the same time. Compass does the opposite — hiding listings away in its private vault, harming consumers and small businesses to benefit itself," the company said in a statement.
The larger debate over private listings: Compass has been aggressively pursuing an exclusive listing strategy for some time, rolling out its 3-Phased Marketing Strategy — which encourages sellers to list privately before going to the MLS — in Nov. 2024, and it has positioned itself as a pro-consumer advocate for "seller choice."
Zillow and other private listing opponents have contended that "hiding listings" creates a fragmented market.
The debate picked up steam last March when the National Association of Realtors announced its update to its Clear Cooperation Policy allowing agents to pre-market homes for a limited time. Zillow's listing policy was announced a month later, followed by the Compass lawsuit.