Compass filed a federal antitrust lawsuit yesterday accusing Zillow of trying to crush competition in the home search space. The core of the lawsuit challenges what Compass calls the “Zillow Ban,” a new policy set to begin enforcement June 30th, which blocks any listing from appearing on Zillow if it was marketed elsewhere—even on a brokerage’s private platform—for more than one day.
Compass claims this rule unfairly targets its 3-Phased Marketing Strategy, which allows sellers to start privately marketing a listing before it hits the MLS and public portals. According to the complaint, 94% of listings that used the strategy in 2024 ultimately went to the MLS and sites like Zillow, but the new policy would strip those sellers of that exposure unless they bypass pre-marketing altogether—or fire their agent and relist with someone else. The suit alleges this is a classic monopolistic move to limit seller choice, eliminate competing innovation, and control inventory. Compass also accuses Zillow of conspiring with Redfin and eXp to enforce the policy across multiple platforms, describing it as a coordinated boycott.
The full lawsuit, which lays out Compass’s claims and supporting evidence, can be viewed below.
Compass vs. Zillow Lawsuit