The ongoing power struggle over real estate listings just escalated.
In a new court filing this week, Zillow accused Compass of running a “three-phase Hidden Listing Scheme,” more commonly known as the brokerage’s 3-Phased Marketing Strategy.
From the filing:
“Compass has developed a three-phase Hidden Listing Scheme, through which it can control consumers’ access to home listings, reduce competition, and increase commissions. During the first two phases of this Scheme, home buyers are dependent on Compass to learn about homes for sale because Compass prevents Zillow from displaying these hidden listings on Zillow’s websites and apps. But Compass concedes that “almost all” of these hidden listings do not actually sell during these two phases. So in phase 3, Compass seeks to force Zillow to display its unsold listings, reaping (for free) the benefits of Zillow’s investments to attract millions of consumers to its platform.”
The filing is part of Zillow’s response to Compass’ antitrust lawsuit and request for a preliminary injunction that would block Zillow’s new listing policy.
The Policy at the Center of the Fight
Earlier this year, Zillow updated its listing standards to require that properties be submitted within 24 hours of being made public, either via MLS or direct upload.
Compass pushed back, filing a lawsuit in June that claimed Zillow’s rules were anticompetitive and harmful to agents and consumers. In Thursday’s filing, Zillow firmly denied those allegations and asked the court to deny Compass’ request for an injunction.
Zillow’s Main Arguments
In its brief, Zillow laid out several key arguments:
- Compass’s “Hidden Listing Scheme” Harms Consumers. Zillow argues Compass’s “3-phase marketing” approach withholds listings from the MLS and public platforms like Zillow in the early stages, limiting consumer access and reducing market transparency.
- Zillow Has No Legal Obligation to Display Compass’s Listings. Citing antitrust precedent, Zillow emphasized that it has no legal obligation to do business with Compass or accommodate its listing tactics.
- Zillow’s listing policy is pro-consumer. Zillow argued that enforcing a 24-hour listing window helps ensure transparency and fair access to new listings for buyers, agents, and the general public.
- There’s no antitrust case here. Zillow argued that Compass’ claims focus only on its own business interests and don’t meet the threshold for antitrust harm. The delay in filing for an injunction also weakens Compass’ argument for urgent harm.
- An Injunction Would Harm Zillow and the Public. Zillow claims a court order forcing it to display Compass’s listings would undermine its ability to uphold transparent, fair listing standards, encourage other brokerages to withhold listings for competitive advantage, and reduce consumer trust and market efficiency.
From Zillow’s filing:
“Compass should not be allowed to have it both ways by forcing Zillow to share the benefits of its audience while at the same time withholding from Zillow and its customers the benefits of the latest listings.”
Taking Aim at Compass Leadership
Zillow’s filing also quoted a conversation with Compass CEO Robert Reffkin to challenge the brokerage’s consumer-first narrative.
Reffkin allegedly told Zillow execs the following:
“All I care about is agents. Taking care of consumers is what you do.”
Zillow’s attorneys used this to underscore their claim that Compass’ strategy is designed to serve its own bottom line, not the broader market.
Where Things Stand
The legal battle between these two giants comes at a time of increased scrutiny over listing access and control. CoStar CEO Andy Florance added fuel to the fire this week with a LinkedIn post accusing Zillow of pulling clients “out of your hands” through for-sale-by-owner tools and aggressive marketing.
Zillow, for its part, is holding the line.
This isn’t just about two companies fighting over listings. It’s a high-stakes clash over who sets the rules for real estate’s digital future, and whose interests those rules are designed to protect.
Read Zillow’s full filing here:
Stay tuned for more as the story develops.
