05/20/2026
The More You Know:
On May 12, 2026, Zillow, an online real estate marketplace, filed a lawsuit against Compass, one of the largest residential real estate brokerages. This new lawsuit adds to a preexisting legal showdown between the two companies and to the overall legal drama that has dominated the real estate industry for the past few years.
Back in June 2025, Compass sued Zillow alleging that the virtual marketplace violated antitrust laws by enacting a policy that required publicly marketed listings to be published on the platform within one business day. The policy, which was modeled after the National Association of Realtor’s Clear Cooperation Policy, was intended to deter private, “pocket listings” (for more information on the Compass Complaint, see https://www.facebook.com/share/p/1DuqacnEhB/).
In February 2026, the Court denied Compass’s request for a preliminary injunction after it found that the brokerage had not shown a likelihood of success on the merits of its antitrust claims. On March 20, 2026, Compass voluntarily dismissed the Complaint shortly after Zillow announced a new feature “Zillow Preview,” which allows brokerages to pre-market listings before they hit the active market.
Now, Zillow alleges that Compass and Midwest Real Estate Data LLC (“MRED”), an MLS that covers the Chicago area, have harmed competition by hiding real estate listings behind a “velvet rope” in a private listing network. The Complaint goes on to allege that the Defendants conspired to cut off Zillow’s access to “all of the real estate listings controlled by MRED and Compass in Chicagoland … in a naked effort to coerce pro-transparency competitors to abandon their business models.”
The Complaint alleges that the Defendants have violated Section 1 of the Sherman Act by engaging in a horizontal group boycott to restrain trade. Zillow also alleges that MRED has violated Section 2 of the Sherman Act by willfully maintaining and abusing its monopoly power in the Chicago area.
On May 18, 2026, Zillow filed a Motion for a Preliminary Injunction asking that the Court prevent MRED from terminating the Chicago listing data while the case proceeds. However, on May 20, 2026, MRED announced that it has suspended Zillow’s access to its data feeds stating that Zillow removed nine listings that were allegedly marketed lawfully under its rules. Zillow issued a statement declaring “Chicagoland home buyers and sellers have far worse access to the housing market than they had yesterday, because their local MLS decided one megabrokerage’s profits mattered more than their ability to achieve the American Dream.”
https://www.housingwire.com/articles/mred-suspends-zillow-feed/
Zillow lost licensed MRED listing data for Zillow and Trulia, about 43,000 active listings, as injunction and arbitration motions proceed.