June 23, 2025 — New York, NY
Compass, a major U.S. real estate brokerage, has filed a high-profile antitrust lawsuit against Zillow, accusing the digital real estate giant of engaging in anti-competitive practices that harm both brokerages and consumers. The lawsuit, filed in the U.S. District Court for the Southern District of New York, challenges Zillow’s “Listing Rule,” which requires properties listed elsewhere to also appear on Zillow’s platform within 24 hours.
According to Compass, this requirement undermines its proprietary “Private Exclusive” program—an offering that gives clients early access to select high-end listings before they hit the broader market. Compass argues that Zillow’s rule limits brokerage innovation and consumer options, while forcing compliance with a policy designed to preserve Zillow’s dominance in the online listing space.
The suit also names Redfin and eXp Realty as co-conspirators, alleging that the brokerages collaborated with Zillow to enforce this rule industry-wide. While Redfin has not publicly commented, a spokesperson for eXp Realty has denied any involvement, stating the company is not party to the development or enforcement of the policy in question.
In a statement responding to the lawsuit, Zillow defended its practices as transparent and fair. A spokesperson said, “Our listing access standards are designed to ensure broad visibility for all inventory and equal opportunity for all consumers. Sellers benefit from maximum exposure, and buyers benefit from access to all available homes on the market.”
Zillow also emphasized that the rule in question is supported by most brokerages and consumer protection groups. The company maintains that the policy aligns with industry best practices and promotes greater transparency in the real estate transaction process.
Compass, however, contends that this so-called fairness is actually a strategy to quash competition. In its court filing, Compass claims that Zillow’s rule pressures brokerages into prematurely disclosing listings, depriving clients of the option to quietly test the market or maintain discretion. The company warns that these practices not only reduce consumer choice but also consolidate power among a few dominant players in the digital real estate sector.
This legal action highlights broader tensions in an industry increasingly shaped by digital platforms and data-driven marketing. Over the past decade, online portals like Zillow and Redfin have transformed how consumers search for homes, often reducing the control brokerages traditionally held over listing distribution. Compass’s lawsuit signals a resistance to that shift, arguing for more flexibility and autonomy in how brokerages operate in a competitive marketplace.
The implications of this lawsuit could be far-reaching. If Compass prevails, it may set a precedent that forces online platforms to allow greater listing exclusivity and alternative marketing strategies. On the other hand, a ruling in favor of Zillow could reaffirm the status quo and potentially discourage other brokerages from challenging platform-dominated norms.
Legal experts note that antitrust claims in the real estate industry can be complex, especially when they intersect with consumer protections and competitive access to market data. “This case is really about who controls the flow of real estate information in a digital-first marketplace,” said a legal analyst familiar with antitrust issues. “The courts will need to weigh innovation and competition against market transparency and consumer equity.”
The lawsuit comes at a time when real estate firms are already adapting to a shifting housing market marked by high mortgage rates, fluctuating demand, and rapid technological change. The outcome of this case could shape not only how listings are distributed but also how brokerages position themselves in an increasingly digital and data-centric industry.
As the legal process unfolds, industry stakeholders across the country will be watching closely to see whether Compass’s challenge prompts a realignment in how real estate listings are shared—and who ultimately controls them.