A federal court case between Compass and Zillow is drawing renewed attention to Zillow’s updated listing-access standards — the same rules at the center of Zillow’s dispute with Chicago’s MLS, MRED, over private listings and visibility requirements.
Compass has sued Zillow for civil antitrust violations, arguing that Zillow’s requirement for homes to be eligible for publication within one business day of being publicly marketed restricts competition and limits how agents can pre-market listings.
Zillow’s position
Zillow argues that the policy is designed to reduce “hidden listings” and improve transparency for buyers. The company maintains it is not required to display competitor listings under their preferred terms and says the updated standards do not violate antitrust laws.
According to Zillow, the rule ensures that publicly marketed properties appear quickly on major platforms, reducing information gaps for consumers entering a market without a local agent.
Compass’ response
Compass claims the policy effectively acts as a “Zillow ban,” penalising listings that go through any premarketing phase lasting more than one day. In its filings, Compass argues that the rule reduces seller flexibility, limits consumer choice, and concentrates control over listing visibility in Zillow’s hands.
Compass also alleges that Zillow coordinated with competitors such as Redfin and eXp Realty when adopting the policy. The company is seeking a preliminary injunction to halt enforcement while litigation proceeds.
Court proceedings
A four-day evidentiary hearing in Manhattan federal court included testimony from executives including Compass CEO Robert Reffkin and Zillow CEO Jeremy Wacksman.
U.S. District Judge Jeannette Vargas questioned both sides on whether there is measurable harm to buyers, sellers, or agents, and whether the alleged conduct reduces competition market-wide. The judge has not indicated when a ruling on the injunction will be issued.
Regulatory and market context
The case comes amid broader scrutiny across the industry. Three months after Compass filed suit, the Federal Trade Commission sued Zillow and Redfin over a $100 million agreement involving multifamily rental advertising, alleging violations of the Sherman and Clayton Acts.
At the same time, Zillow has been in a separate dispute with Midwest Real Estate Data (MRED) in Chicago, after warning that MRED’s Private Listing Network (PLN) may violate its updated listing rules. MRED argues that its licensing agreement requires Zillow to display all licensed listings without restriction. The conflict highlights growing tension around private networks, listing transparency, and who ultimately controls the timing of public visibility across major platforms.
What comes next
If the court grants Compass’ requested injunction, Zillow may be temporarily barred from enforcing the one-day rule nationwide. If not, the standard could continue shaping how listings enter major platforms in 2026.
Both companies say discussions — legal and otherwise — are ongoing.
Source: Courthouse News
