Court denies Zillow injunction, sends MRED claims to arbitration

MRED had previously shut off Zillow's listing data feed for nearly two days in mid-May, alleging a "material breach" of its license agreements. Zillow had sought a preliminary injunction to prevent this data feed from being permanently cut off. MRED countered by filing its own motion to compel arbitration, arguing that Zillow had contractually agreed to arbitrate such disputes. The court's decision to grant MRED's motion means the core of the dispute will now be handled through arbitration.

MRED framed the ruling as a significant win for MLSs and the cooperative real estate marketplace, emphasizing the importance of enforcing data licensing requirements and display rules. The MLS argued that allowing brokerages or portals to omit competitors' listings based on subjective criteria would undermine cooperation. Compass International Holdings also declared the decision a victory, asserting it promotes free competition and consumer choice in the real estate industry.

Zillow, however, stressed that the court's decision was not a final judgment on the merits of its antitrust and competition claims. The company stated that the ruling was a procedural step and not a finding that MRED and Compass acted improperly. Zillow argued that the outcome is a temporary setback for home buyers and sellers in Chicago, potentially jeopardizing a fair housing market.