Compass, a real estate brokerage company, has filed a lawsuit against Zillow for its policy banning private home listings. The lawsuit, filed in the US district court for the southern district of New York, accuses Zillow of using anticompetitive tactics to protect its monopoly and revenues, thereby violating antitrust laws. Compass alleges that Zillow’s exclusionary policy penalizes home sellers and their agents for marketing properties off Zillow, resulting in a ban from Zillow, Redfin, and eXp Realty’s search platforms.

Describing this policy as the “Zillow Ban,” Compass claims it aims to steer all home listings onto Zillow’s dominant platform to monetize each listing and maintain its monopoly. The lawsuit asserts that the ban hampers competition and limits homeowner choice, preventing rivals from competing fairly. Compass seeks an injunction to stop Zillow from enforcing the ban and similar policies, along with damages to be determined in court.

In response, a Zillow spokesperson defended the company, calling the claims unfounded and pledging to vigorously challenge them. Amidst a fiercely competitive housing market, recent data from the National Association of Realtors shows a decline in US home sales due to elevated mortgage rates and rising prices, posing challenges for prospective buyers during the typically busy spring season. Existing home sales dropped in April, marking the slowest pace since 2009, reflecting the broader challenges facing the housing market.