Compass case against NWMLS will proceed
In a Mar. 19 ruling, a judge denied the Seattle-area MLS’s motion to dismiss, stating that Compass had made “plausible claims” of competitive harm.
An antitrust lawsuit that Compass brought nearly a year ago against the Washington state-based Northwest Multiple Listing Service (NWMLS) will move forward.
On Mar. 19, U.S. District Court Judge Jamal Whitehead denied the MLS's motion to dismiss, saying Compass presents "plausible claims for relief" under the federal Sherman Antitrust Act, Washington state's Consumer Protection Act and state common law.
Meanwhile, a new law prohibiting certain types of exclusive real estate marketing practices was signed by the Washington state governor earlier this week, which could potentially impact the case as it proceeds.
How we got here: Compass sued NWMLS last April over the MLS's policies prohibiting pre-marketing and office exclusives, saying those rules "prevented meaningful competition from gaining traction" and effectively blocked the brokerage's ability to implement its 3-phased marketing strategy in the region.
Just weeks before filing the lawsuit, Compass launched private listings in the Seattle area in defiance of NWMLS rules, a move that led to a two-day suspension of Compass' IDX feed.
NWMLS has countered Compass' anticompetitive claims, arguing that the organization's policies are pro-competitive because they ensure equal access to property listing information. "An open, fair, transparent, and comprehensive marketplace benefits all market participants, including sellers, buyers, brokers, and appraisers," NWMLS President and CEO Justin Haag wrote in a March 2025 statement.
"Proponents of hiding listings masquerade their self-dealing as offering 'seller choice.' They argue that sellers somehow benefit from not making their listing available to all potential buyers. They don't," Haag said.
Why the case will proceed: In a 23-page response denying NWMLS's motion to dismiss, Judge Whitehead expressed some skepticism about Compass' allegations that a "group boycott" was taking place, but he said the court "need not resolve that question to decide this motion" because Compass' antitrust arguments were strong enough to move the case forward.
"Compass has plausibly alleged diminished quality of services in at least one of the relevant markets alleged — the offering of real estate brokerage services to sellers of residential real property," Whitehead wrote. "That is sufficient to satisfy the antitrust injury requirement at the pleading stage."
What NWMLS had to say: "While Northwest MLS is disappointed that its motion to dismiss was denied, on a motion to dismiss, the Court must accept all allegations in the complaint as true and draw all reasonable inferences in favor of the plaintiff, and not the defendant," NWMLS shared in a statement. "Because the Court's decision was based solely on Compass' allegations, the judge made clear that "[t]he Court's denial of this motion [to dismiss] . . . should not be read as expressing any view on the ultimate merits of the Parties' competing theories."
The MLS "is confident in its pro-competitive and pro-consumer rules and systems and the transparent and comprehensive marketplace that its members have advanced over the past 40 years," the statement concluded.
What Compass had to say: Compass CEO Robert Reffkin didn't address the ruling directly, but in a comment shared by a Compass spokesperson, Reffkin emphasized that NWMLS rules don't replace the law, and an agent's fiduciary duty to their client comes first. "NWMLS (a private company owned by brokerage competitors) shouldn't be able to regularly fine agents $5000 for publicly marketing outside NWMLS when they are following their clients' seller-directed marketing plan," Reffkin said.
"NWMLS fines our brokers if we launch their listing in this way, creating a clear conflict of interest. Our real estate professionals have a statutory duty to be LOYAL to their client, not to the MLS. Statutory duty is a law. NWMLS rules don't supersede the law."
State enacts private listing law: Meanwhile, a bill barring certain types of exclusive marketing practices was signed into Washington state law on Mar. 16.
The bipartisan legislation was introduced in January and prohibits "marketing residential properties to an exclusive group of prospective buyers or real estate brokers" unless it is also broadly marketed to consumers and other agents at the same time.
It's not yet clear how the new law, set to take effect on June 11, will impact Compass' case, but NWMLS stated that its rules "are entirely consistent" with the legislation.
This story has been updated with comments from NWMLS and Compass CEO Robert Reffkin.