Michelle Chapman, Associated Press
Real estate broker Compass has filed a lawsuit against Zillow over a policy to ban private housing lists.
In a filing in the US District Court for the Southern District of New York, Compass argued that “Zillow sought to rely on anti-competitive tactics to protect monopoly and revenues in violation of monopoly law.”
Compass says Zillow has enforced an exclusive policy if home sellers and real estate agents have sold Zillow for more than a day, and if they sell Zillow on Zillow and its allies Redfin and Exp Realty are listed on the search platform.
“Zillow Ban is trying to ensure that all homelists in this country go to its dominant search platform, so Zillow can monetize each homelist and protect its monopoly,” Compass said in the lawsuit.
The Compass claims that the “Zillow Ban” was enacted to prevent rivals from competing with it and reduce homeowner selection.
“In a free and competitive market, competitors’ products and strategies need to rise and gain benefits, rather than the whims of exclusive gatekeepers like Zillow,” Compass said.
Compass wants an injunction that prohibits Zillow from implementing and implementing policies similar to that of “Zillow Ban.” The company also wants to be tried by a ju trial and unspecified damages.
A Zillow spokesman said in a statement Monday that the company believes its lawsuit claims are unfounded and will vehemently defend them.
“Our focus remains on creating a level playing field that will serve the greatest benefits of everyone on the home buying and selling journey,” the spokesman said.
The housing market has always been competitive, but it has become even more intense these days. Last month, the National Association of Realtors reported that sales of previously occupied US homes had declined in April. The rise in mortgage rates and price increases are traditionally because they discouraged future home buyers during the busiest times in the housing market.
According to the National Association of Realtors, existing home sales fell 0.5% from April to March. Sales declined in April, which dates back to 2009, was the slowest pace of sales in April, triggered by the housing crisis in the US. The sales pace in March was the slowest of the month, dating back to 2009.
The National Association of Realtors said on Monday that sales on existing homes barely moved in May, with existing home sales rising 0.8% to an annual rate of 403 million seasonally adjusted annually since last month, April. With stubbornly high mortgage rates and rising prices, home buying is no longer affordable, even as property inventory continues to rise in the market.
There were also more seller issues than home buyers. As of April, the US housing market had nearly 34% sellers than buyers buyers buy homes, according to an analysis by Redfin.
Other than April 2020, when the pandemic halted the economy and home sales activities, there were previously no such few buyers in the home market, based on records dating back to 2013.
Original issue: June 23, 2025, 12:30pm EDT
