Two of the biggest names in real estate are locked in a legal battle, and things just got more complicated.
Zillow thinks that Compass’s recent purchase of Anywhere Real Estate could change everything about their ongoing lawsuit. The fight is all about how real estate listings show up online—and who gets to control that.
What’s This Fight Really About?
Here’s the background: Back in April, Zillow announced a new policy about listings.
The rule says that if a home has been advertised publicly for more than one business day before being added to the MLS (that’s the Multiple Listing Service, where realtors share home listings), then Zillow won’t show it on their website.
This is the time when both parties are required to provide documents and information to each other before the trial.
Compass is seeking what is known as a preliminary injunction, which would compel Zillow to immediately stop enforcing this policy. According to Compass, continuing this rule would cause irreparable damage to their business.
Judge Jeanette A. Vargas is overseeing the case in U.S. District Court in New York City.
Compass Says Zillow Is Breaking the Law
In late June, right before Zillow’s policy was supposed to start, Compass filed a lawsuit claiming Zillow is breaking federal antitrust laws.
“To protect its market dominance, Zillow has retaliated against competitive threats by enacting an exclusionary policy,” Compass argued in court documents.
This policy could really hurt Compass because the company has built its business around something called “private listings.” Compass uses a three-step marketing strategy that involves showing homes to select buyers before listing them publicly.
Zillow’s new rule would mess up that whole system.
Zillow Wants More Information About the Anywhere Deal
Now Zillow is asking Judge Vargas for permission to dig deeper into Compass’s purchase of Anywhere Real Estate.
In a letter filed this week, Zillow says it wants specific documents related to the acquisition and wants to interview Compass CEO Robert Reffkin for another two hours.
What exactly does Zillow want to see? They’re asking for documents that include promises Compass made to Anywhere, information about financial risks, messages between the two companies about Zillow’s listing policy, details about Compass’s three-phase marketing strategy, and financial predictions related to the merger.
Why does Zillow care about all this?
They think it’s important because Compass is claiming they’ll suffer “irreparable harm” from Zillow’s policy.
But Zillow believes the Anywhere deal proves that Compass is actually doing just fine financially. They suspect that Compass might have told Anywhere something different about how Zillow’s policy would affect their business.
Compass Says Zillow Is Going Too Far
Compass is fighting back hard against Zillow’s requests. They’re calling it a “wide-ranging sideshow of an unrelated transaction.”
“The information that Zillow demands is neither relevant to the Court’s consideration of Compass’s preliminary injunction motion nor proportional to the expedited discovery phase in this phase of the case,” Compass wrote in their response.
Compass also says Zillow’s requests are way too broad. Finding all these documents would require massive searches through emails, phones, and files.
They also pointed out that Zillow already interviewed Reffkin for four hours and could have asked about potential deals then—but didn’t.
The two sides have reached what’s called an impasse, which means they can’t agree on anything. Now Judge Vargas will have to decide who’s right.
Compass Gets a Win
This isn’t the first time the judge has had to step in. Back in mid-September, Compass asked to interview Zillow co-founder Lloyd Frink, and the judge said yes.
Compass argued that Frink has “unique and important information that no other witness can provide.” Zillow tried to stop it, saying Compass hadn’t proven that talking to Frink would give them any special information. But Judge Vargas sided with Compass.
“Upon review of the parties’ submissions, the Court finds that Plaintiff has adequately established Mr. Frink possesses unique and personal knowledge relevant to the pending preliminary injunction motion,” the judge wrote in her ruling.
What Happens Next?
Just like she did with the request to interview Frink, Judge Vargas will now decide whether Zillow gets access to the documents and another interview with Reffkin.
This case matters because it could change how real estate listings work online. If Compass wins, Zillow might have to drop its policy. If Zillow wins, other real estate companies might have to change how they market homes.
For now, both companies are waiting to see what the judge decides.
Author Profile
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The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.
He also writes humorous articles about real estate, investors, and realtors.
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