Key facts
- Compass is demanding MLSs stop penalizing brokers for pre-MLS listing marketing.
- Compass claims these MLS rules violate antitrust laws and restrict competition.
- CRMLS, Unlock MLS, and OneKey MLS have rejected Compass's demands.
- CRMLS is already facing an antitrust lawsuit from Compass.
- Brokers fear market fragmentation, inconsistent data, and a collapse of the real estate system if Compass succeeds.
- Compass argues MLS rules force listings to be private and punish public marketing.
Compass International Holdings is demanding that multiple listing services (MLSs) cease enforcing rules that penalize brokers for publicly marketing listings before they are submitted to the MLS. In demand letters sent in early September, Compass argued these policies violate antitrust laws and unlawfully restrict competition. So far, California Regional MLS (CRMLS), Unlock MLS, and OneKey MLS have rejected these demands. CRMLS is already facing an antitrust lawsuit from Compass.
Brokers like Bess Freedman of Brown Harris Stevens and Anthony Lamacchia of Lamacchia Realty fear that if Compass succeeds, it could lead to increased market fragmentation, inconsistent data, and a breakdown of the cooperative MLS system. They believe this could result in a 'listing arms race' where brokerages hoard their own inventory, ultimately harming smaller brokerages and consumers.
James Dwiggins, president of NextHome, echoed these concerns, stating that MLS rules like Clear Cooperation are essential for a cooperative marketplace and that Compass's demands are an attempt to 'free ride.' He warned that the collapse of the MLS infrastructure would make it difficult for agents to perform comparative market analyses and for appraisals to be conducted accurately.
Phillip Cantrell of Benchmark Realty suggested that MLSs have overstepped by acting as rule enforcement arms rather than focusing on their core business as data companies. Compass, however, maintains that its listings are publicly available on its website and that MLS rules force listings to be private, thereby punishing public marketing.