Zillow has responded to a lawsuit filed by Compass, asserting that the legal action is aimed at safeguarding Compass’s interests rather than benefiting consumers. The company argues that it is not obligated to alter its listing standards to accommodate another company’s business strategy.
Zillow’s defense was presented in a court filing dated July 17 in the Southern District of New York, opposing Compass’s request for a preliminary injunction against Zillow’s listing rules. These rules, introduced in April and now enforced, prevent listings from appearing on Zillow or Trulia if they have been publicly marketed but not shared with Zillow or an MLS within one business day.
Conversations, not conspiracy:
Zillow’s response includes statements from senior executives and details discussions with Redfin and eXp, two brokerages supporting the policy that Compass claimed might indicate collusion. However, Zillow characterizes these discussions as routine notifications before the policy launch, emphasizing that no collusion took place.
Key Points:
- Zillow asserts it will not adjust its listing standards to suit Compass’s preferences.
- Conversations with Redfin and eXp were routine and not indicative of collusion.
- Compass’s lawsuit aims to protect homeowner choice in listing their properties.
- Zillow’s policy blocks listings not shared with Zillow or an MLS within one business day.
- Compass’s lawsuit challenges Zillow’s dominance in the home search market.
