Compass has accused Zillow of using its listing policy to illegally quash competition and has asked a court for a preliminary injunction to block the policy. According to a recent brief from Compass, Zillow’s policy has successfully pushed 90% of agents who received a warning about off-portal marketing to comply with the new rules. Compass argues this is an abuse of Zillow’s market power to control and monetize the real estate process.

Background and key arguments

The “Zillow Ban”: The core of the lawsuit is Zillow’s listing policy, which requires properties that are publicly marketed to be listed on a Multiple Listing Service (MLS) and on Zillow within one business day. Compass has dubbed this the “Zillow Ban”.
Targeting Compass’s strategy: The policy targets Compass’s marketing strategy of offering “Private Exclusive” and “Coming Soon” listings, which are first marketed through the brokerage’s network before being listed publicly. Zillow’s policy forces a trade-off where sellers either list on Zillow quickly or risk being excluded from the platform entirely.
Antitrust allegations: Compass filed a federal antitrust lawsuit in June 2025, claiming Zillow is using its dominant position to create a monopoly in the home search market. Compass is seeking an injunction, damages, and a trial by jury.
Collusion claims: Compass alleges that Zillow is conspiring with other companies, such as Redfin and eXp Realty, to enforce its policy and stifle innovation.
Conflicting narratives: While Compass claims it is fighting for consumer and seller choice, Zillow argues its policy promotes transparency and equal access to listings, which benefits buyers and sellers. Zillow has previously called Compass’s approach a “hidden listing scheme” that harms consumers.
Evidence and legal process: In late October 2025, a judge denied a request by Compass to compel Redfin to turn over documents related to its own, now-paused, mirrored policy. A hearing for Compass’s preliminary injunction motion is scheduled for later in November 2025.