Allegations of a Real Estate Cartel
But Compass isn’t just pointing fingers at Zillow. The lawsuit also implicates Redfin and ExP Realty as co-conspirators, though they are not named as defendants. Compass claims the trio colluded to enforce the ban, forming a “horizontal agreement” — a per se violation of Section 1 of the Sherman Act — aimed at eliminating alternative listing practices and preserving market power.
According to the suit, Redfin invited Compass to join the scheme but was rebuffed. The alleged goal? Ensure no brokerage gained access to listings the others didn’t have — effectively freezing out innovative or privacy-minded sellers.
The lawsuit also notes that Redfin’s recent revenue-sharing pact with Zillow for multifamily listings, now reportedly under antitrust scrutiny, served as motivation to align policies.
Zillow Fires Back: “Hiding Listings Hurts Everyone”
Zillow responded with a sharp rebuttal, dismissing Compass’ claims as baseless and pledging a vigorous defense.
“When a listing is publicly marketed, it should be accessible to all buyers — across all platforms,” a Zillow spokesperson said. “Hiding listings fragments the market, limits consumer choice, and undermines affordability.”
Zillow claims the policy is backed by consumer advocates, fair housing experts, and most brokerages, asserting it benefits buyers, sellers, and agents alike.
