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Compass Sues Zillow for Antitrust Violations, Alleges Monopoly Protection
ByAinvest
Monday, Jun 23, 2025 8:59 am ET1min read
Compass Inc. has sued Zillow, alleging that the real estate company is stifling competition by steering all US home listings to its platform to make money. Compass claims Zillow is protecting its monopoly and violating antitrust laws. The lawsuit seeks to stop Zillow from allegedly manipulating the real estate market and to restore competition.
Compass Inc. has filed a lawsuit against Zillow Group Inc., alleging that the home-search website is stifling competition by steering all US home listings to its platform to make money. Compass claims that Zillow is protecting its monopoly and violating antitrust laws. The lawsuit seeks to stop Zillow from allegedly manipulating the real estate market and to restore competition.The lawsuit, filed in federal court in Manhattan, accuses Zillow of using "anticompetitive tactics" by banning listings that have been publicly marketed elsewhere first [1]. Compass alleges that Zillow has retaliated against competitive threats by enacting an exclusionary policy, which includes banning listings that have been publicly marketed elsewhere.
Compass also contends that Zillow imposes a tax on home buyers seeking tours of a listed property, which would normally be free. Instead, Zillow directs buyers to a Zillow-affiliated buyer agent who charges the buyer an incremental commission. Zillow collects up to 40% of this commission from the buyer agent in exchange for providing the buyer's user information [2].
The lawsuit comes after months of back-and-forth between the companies over Compass' push to encourage sellers to first market their homes to other agents at the firm. Zillow has argued that there should be transparency, but Compass argues that Zillow's actions are anticompetitive and violate antitrust laws.
The stock prices of both companies reacted to the news. Zillow stock fell 0.8%, and Compass stock slid 2.0% in premarket trading [2].
References:
[1] https://news.bloomberglaw.com/health-law-and-business/compass-sues-zillow-as-fight-over-private-home-listings-heats-up
[2] https://seekingalpha.com/news/4460745-compass-sues-zillow-for-allegedly-stifling-competition
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