Zillow has initiated an antitrust lawsuit against Midwest Real Estate Data (MRED) and Compass, alleging a conspiracy to undermine Zillow’s access to Chicago-area listing data. The legal action, filed in federal court in Chicago, centers on a recent agreement between MRED and Compass that Zillow claims unfairly benefits Compass and harms competition.
Key Takeaways
- Zillow alleges MRED and Compass colluded to threaten Zillow’s Chicagoland listing data feed.
- The lawsuit claims the arrangement allows Compass to extend its influence beyond Chicago and pressure competitors.
- MRED allegedly demanded Zillow reinstate Compass’s private listings and threatened to terminate data access.
- Zillow believes MRED used Compass’s board influence to alter rules to Compass’s advantage.
The Core of the Dispute
The lawsuit stems from an April agreement where Compass announced it would share its nationwide listings through MRED’s private listing network as part of an expanded Multiple Listing Service (MLS) partnership. Zillow contends this arrangement allows Compass agents to enter listings into MRED in a manner that extends their leverage nationally, forcing competitors to abandon consumer protections.
Allegations of Coercion
According to Zillow, MRED recently demanded that Zillow reinstate Compass’s private listings from outside its territory. MRED allegedly threatened to terminate Zillow’s data feed access if it did not comply with this demand. Zillow asserts that Compass holds significant influence within MRED, controlling a substantial portion of board seats and market sales, which it allegedly used to reshape rules to its own benefit.
Impact on Competition and Consumers
Zillow claims that Compass’s agreement to subsidize membership costs for its agents joining MRED could significantly increase MRED’s size and its power to dictate industry rules. Zillow argues that MRED, in turn, agreed to use its control over Chicago-area listing data to pressure platforms that adopt stricter transparency rules. Zillow’s Chief Industry Officer, Errol Samuelson, stated that the lawsuit is fundamentally about consumer benefit, competition, and fairness, accusing MRED of using its monopoly power to undermine the MLS’s role as a fair marketplace and threatening access to Chicago listings to protect Compass’s interests elsewhere.
Legal Basis
Zillow’s lawsuit is based on alleged violations of the Sherman Antitrust Act. MRED has not yet responded to requests for comment.