July 21, 2025
A major legal battle is brewing in the real estate world — and at the center of it are two industry giants: Compass and Zillow. Compass, one of the country’s largest brokerages by sales volume, has filed a federal lawsuit in New York, accusing Zillow of monopolistic behavior and anticompetitive practices designed to shut out rivals from the digital listings space.
As realtors, we’ve all seen how essential online visibility has become in today’s market. Nearly every buyer starts their home search online, and Zillow dominates the space with 227 million unique monthly visitors and a database of roughly 160 million properties. But that kind of dominance also comes with outsized influence — and that’s what Compass is taking aim at.
Compass has built a marketing platform called “Private Exclusives,” where listings are shared internally with Compass agents and their buyers before being pushed out to public platforms like Zillow.
According to Compass, this approach gives sellers time to test pricing, refine marketing strategies, and get real-time feedback — all while maintaining some level of privacy.
Zillow, however, isn’t a fan of these private listings. In April, the company doubled down on a policy stating that if a home is not listed on Zillow within 24 hours of hitting the market, it will be permanently banned from the site — a move Compass is calling the “Zillow ban.” Trulia, which Zillow owns, and Redfin quickly followed with similar policies.
This lawsuit could reshape how listings are shared — and who controls them. Zillow claims it’s about transparency and consumer access. Compass, on the other hand, argues that this is a power play — designed to protect Zillow’s profit model by forcing all listings onto their platform, where they sell leads to agents.
This battle also reflects larger tensions around “pocket listings” or “whisper listings,” which have always been controversial in the industry. For brokerages like Compass, they’re a tool to deliver tailored marketing and preserve seller privacy. For platforms like Zillow, they represent lost data — and lost revenue.
That depends on where you stand. If you're a listing agent trying to provide your sellers with flexible options and a sense of control, Compass's argument makes sense. But if you're a buyer’s agent (or a buyer) relying on Zillow or Redfin to see what’s available, then their stance on open access may seem more aligned with your needs.
But here’s the bottom line: this lawsuit isn’t just about two companies. It’s about who gets to control listing visibility — and what that means for agents, brokerages, and, most importantly, our clients.
This one’s going to be worth watching.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
