United States District Judge Jeannette Vargas has denied Compass’s request for a preliminary injunction against Zillow, a move that would have temporarily stopped Zillow from enforcing its private-listing ban. The decision comes as part of Compass’s ongoing federal antitrust lawsuit against the real estate giant.
Key Takeaways
- Judge Jeannette Vargas denied Compass’s motion for a preliminary injunction against Zillow.
- The ruling means Zillow can continue enforcing its private-listing ban while the antitrust lawsuit proceeds.
- The judge cited a lack of sufficient evidence from Compass to prove Zillow holds a monopoly.
- Zillow hailed the decision as a victory for consumers and the industry, emphasizing equal access to real estate information.
- Compass stated its lawsuit continues, aiming to protect agents from Zillow’s alleged "punishment" tactics.
Legal Battle Continues
In her ruling on February 6, Judge Vargas stated that Zillow’s market position and brand recognition do not appear to prevent consumers from comparing listings across different platforms. Even if Zillow holds a significant market share, Compass failed to provide enough evidence to demonstrate a monopoly that would warrant the immediate halt of Zillow’s policies.
This injunction would have prevented Zillow from enforcing its policy, introduced last May, which prohibits the public marketing of listings that are not also available on all listing services, including Zillow itself. Compass’s lawsuit, filed in June, alleges that Zillow’s policies violate antitrust laws.
Zillow’s Reaction and Compass’s Stance
A Zillow spokesperson celebrated the ruling, calling it a "clear victory" for consumers, agents, brokerages, and the real estate industry. Zillow believes in equal access to real estate information and accused Compass of attempting to "hide listings away in its private vault" to benefit itself, thereby harming consumers and small businesses.
Compass, however, maintained that the ruling is not a setback. Robert Reffkin, chairman and CEO of Compass International Holdings, emphasized that the lawsuit is ongoing and that Compass has an obligation to protect its agents from Zillow, referencing an internal Zillow document that allegedly mentioned a "punishment list" for agents who do not comply with Zillow’s listing policies. Compass claims its "private exclusive" listing model, which delays listings on the broader MLS, is not the core issue, but rather Zillow’s demand for universal public availability of all marketed listings.
An upcoming trial will determine the ultimate merits of Compass’s antitrust claims against Zillow.