Online real estate and rental website Zillow has filed a federal lawsuit against Midwest Real Estate Data and Compass International Holdings on Tuesday, alleging those companies conspired to hurt Zillow and strong-arm it into displaying listings that follow Compass’ private marketing plan.
According to the Real Deal, MRED recently moved to expand access to the MLS nationally, including to its relatively unique Private Listing Network. That expansion was backed by Compass International Holdings, which Real Deal said, promised to syndicate its national inventory to MRED, including sending off-market listings to the private network.
The lawsuit was filed in the Northern District of Illinois, and in it, Zillow alleges that MRED and Compass conspired over a series of moves to choke off Zillow’s access to its listings.
According to the lawsuit, MRED demanded on May 6 that Zillow reinstate Compass private listings in states outside MRED’s territory.
Zillow’s Data Access
The lawsuit alleges that a technology provider whose board is chaired by MRED CEO Rebecca Jensen threatened that same day to terminate Zillow’s data access. Two days later, according to the lawsuit, Zillow said Compass terminated all of its direct listing feed agreements with Zillow nationwide.
Zillow said it is seeking an injunction blocking MRED from enforcing the rules at issue and from cutting off its data access, along with treble damages and attorney fees, according to Real Deal. The lawsuit comes two months after Compass dropped a separate antitrust case against Zillow, which Real Deal said accused the company of antitrust violations.
Compass dropped the lawsuit in March after Zillow loosened its listing standards, Real Deal reported.
This lawsuit is the culmination of months of animosity between Zillow and MRED over MRED’s Private Listing Network, Real Deal said.
Previously, Zillow contended that listings marketed on the private network, which are later syndicated to public websites, violate its listing standards. Zillow has argued that the private network distorts the market and entrenches segregation in Chicago, Real Deal reported.
Jensen has defended the network, arguing it provides options for sellers and gives flexibility to sensitive situations such as divorce or death, where a seller may not want their listing advertised broadly.
Real Deal reported that MRED and Compass did not immediately respond to a request for comment.
