The digital real estate market is facing a major shakeup as Compass, one of the largest real estate brokerages in the U.S., files an antitrust lawsuit against Zillow. At the center of the dispute is what Compass calls the “Zillow Ban”—a policy that permanently excludes homes from Zillow’s massive platform if they are marketed privately for more than 24 hours.
Zillow, which draws over 227 million unique monthly visitors and holds data on 160 million properties, is the industry’s most powerful digital gatekeeper. Compass alleges that Zillow’s policy is anti-competitive and designed to protect its market dominance by blocking alternative listing strategies.
Private Exclusives Program
Compass is pushing its Private Exclusives program—a marketing channel allowing homes to be shown only to Compass agents and their clients before going public. These off-market or “pocket listings” are popular among luxury sellers seeking discretion and flexibility. But Zillow’s policy now punishes that approach, banning any such homes from its site and its affiliate, Trulia.
Lawsuit
In its lawsuit filed in New York federal court, Compass claims this “Zillow Ban” violates antitrust laws, limits consumer choice, and unfairly blocks rivals from competing. Compass argues that in a truly competitive marketplace, sellers and agents should be free to choose how they list properties—whether publicly or privately.
Zillow, however, defends its policy, stating that hiding listings fragments the market and harms buyers. The company says that public visibility supports transparency and equal access, pointing to a 2019 rule by the National Association of Realtors (NAR) that required listings to be placed on an MLS within 24 hours of public marketing. Zillow and Redfin (also enforcing a similar policy) say this helps maintain an open market.
The debate comes at a time when the U.S. housing market is under pressure. Home sales remain sluggish due to high mortgage rates and record prices. Redfin reports that, as of April, there were 34% more sellers than buyers. With fewer eyes on listings, sellers depend more than ever on exposure—and Zillow’s traffic makes its platform a key battleground.
Compass claims Zillow’s true motivation is financial. The more listings Zillow controls, the more it can monetize them by selling leads to agents. “Zillow cannot make money from listings it doesn’t control,” the lawsuit says.
Broader Questions
This legal showdown raises a broader question about the future of real estate: Should one digital platform dictate how listings are shared? Or should agents and sellers retain flexibility in marketing their homes?
As a real estate developer, I see value on both sides. Wide exposure benefits many sellers and buyers. But private listings can also serve legitimate purposes, especially in luxury markets like Palm Beach. The industry needs room for both strategies.
This lawsuit may reshape the rules of digital real estate—and determine who controls the modern home search.
