Key facts
- MRED is seeking arbitration in its antitrust lawsuit against Zillow.
- A federal court hearing is underway regarding Zillow's motion to prevent MRED from terminating its listing feed.
- MRED previously cut off Zillow's listing feed, alleging a breach of contract, but it was restored under a temporary restraining order.
- Zillow claims MRED and Compass conspired to withhold listing data and pressure Zillow regarding its listing access standards policy.
- Compass argues Zillow uses its dominant platform to dictate broker marketing strategies and restrict seller choice.
A federal court in Chicago is holding a two-day hearing on Zillow's preliminary injunction motion in its antitrust lawsuit against Midwest Real Estate Data (MRED) and Compass International Holdings. The hearing addresses Zillow's request to prevent MRED from terminating its listing feed, a move MRED made in May after alleging a breach of contract. The feed was temporarily restored after a judge granted Zillow a temporary restraining order (TRO), which was later extended.
MRED is also seeking to compel arbitration, arguing that contractual arbitration clauses are enforceable. The current TRO prevents Zillow from banning MRED listings and remains in effect until the court rules on the injunction or arbitration.
During opening statements, Zillow's counsel alleged a coordinated effort by Compass and MRED to hide homes from consumers and pressure Zillow regarding its listing access standards policy. Zillow contends that withholding listings harms buyers and sellers and could impact housing affordability.
In contrast, counsel for Compass and MRED argued that Zillow's policy aims to maintain its user traffic rather than promote market transparency, asserting that MRED acts as neutral industry infrastructure. They claim Zillow's policy conflicts with its business model and that MRED distributes listings fairly.
Zillow's chief industry development officer, Errol Samuelson, testified that Compass's private listings are not truly private and are used as a marketing tactic to lure buyers, which harms competition. He also noted that other MLSs have not cut off Zillow's feed, suggesting MRED acted on behalf of Compass.
Compass plans to argue that Zillow, unlike licensed brokerages, does not compete for listings or owe fiduciary duties but uses its platform to dictate broker marketing and restrict seller choice. They contend Zillow's policies penalize sellers, hide active listings, and deceive consumers by labeling them as not for sale.