Key facts
- Zillow is in an antitrust case against Midwest Real Estate Data (MRED) and Compass over listing visibility.
- Zillow's Listing Access Standards require listings to be on IDX or VOW feeds within one business day of marketing.
- Compass and MRED argue Zillow's policy harms itself and pushes sellers towards less transparent listings.
- The case before Judge John Tharp Jr. will determine preliminary operating rules for the MRED MLS.
- The article advises real estate agents to focus on client trust and transparent marketing plans regardless of the lawsuit's outcome.
A federal judge in Chicago is presiding over an antitrust case where Zillow is suing Compass and Midwest Real Estate Data (MRED), an MLS. Zillow alleges that Compass and MRED colluded to block its access to property listings, particularly impacting Zillow's ability to display listings that are marketed privately before reaching the MLS. Zillow's Listing Access Standards require properties to be available on IDX or VOW feeds within one business day of public marketing, a rule that directly affects Compass's private exclusive listings.
MRED and Compass, in their joint defense, argue that Zillow's actions are self-inflicted and that Zillow's policy actually promotes less transparency by pushing sellers towards completely private listings. They contend that Zillow's feed, which they describe as the 'lifeblood' of its business, is received virtually for free, and all Zillow needs to do is not subjectively ban listings. MRED also points to a 2008 DOJ settlement that barred MLSs from hiding listings from consumer portals, stating its display rules are objective.
Testimony revealed sharp exchanges, with MRED's CEO expressing dismay at Zillow's awareness of potential MLS rule violations when implementing its policy. Compass's CEO testified that Zillow used incentives to discourage Compass from marketing listings off-portal. The core of the dispute centers on who controls the flow of listing information and where listings are ultimately displayed to consumers.
Real estate coach Darryl Davis emphasizes that this legal battle is between corporations and does not directly involve listing agents, whose primary asset is client trust. He advises agents to create detailed marketing plans for sellers, audit their listing sources, and maintain clear communication to reassure clients amidst the ongoing 'portal wars.' Davis suggests that regardless of the court's decision, the landscape of listing distribution will continue to evolve, and agents should focus on serving their clients rather than the corporate disputes.