Key facts
- Consumer groups have asked the FTC and DOJ to investigate Compass MLS deals.
- The groups cite concerns about harm to competition and fair housing.
- Zillow is involved in an antitrust lawsuit against Midwest Real Estate Data (MRED) and Compass.
- Zillow alleges MRED and Compass conspired to block its listing access standards and a premarket product.
- MRED and Compass claim Zillow is attempting to misuse MLS data and violate rules from a 2008 DOJ settlement.
Consumer advocacy groups have formally requested that the Federal Trade Commission (FTC) and the Department of Justice (DOJ) investigate deals involving Compass and multiple listing services (MLS), citing potential harm to competition and fair housing.
This request comes as Zillow's antitrust lawsuit against Midwest Real Estate Data (MRED) and Compass International Holdings is underway. Zillow argues that MRED and Compass have conspired to weaponize MLS rules to block Zillow's listing access standards and its new premarket product, Zillow Preview. Zillow contends this action is intended to protect private listing networks (PLNs) and maintain their control over off-market inventory.
Zillow's legal team framed the dispute as a classic antitrust case concerning access to essential data, emphasizing that new listings are crucial for consumer engagement and lead generation on their platform. They argue that PLNs are detrimental to consumers, sellers, and buyers by reducing competition and limiting access to available homes.
In contrast, MRED and Compass assert that Zillow is the entity attempting to manipulate MLS data to enforce its preferred business model. They argue that Zillow's listing access standards violate MRED's long-standing rules, which are based on a 2008 DOJ settlement requiring equal access to listings for all participants. MRED's counsel stated that Zillow's standards are designed to coerce sellers and agents away from alternative marketing strategies.
Compass counsel further argued that Compass acted unilaterally in complaining to MLSs about Zillow's listing bans, that Zillow has not suffered an antitrust injury because its business strategy is not protected by antitrust laws, and that any harm to Zillow is self-inflicted and compensable by monetary damages.