Hidden Homes: Compass's Antitrust Battle

Compass, a major residential real estate brokerage, has been criticized for its 'Private Exclusives' strategy, which makes properties visible only through its own platforms. This approach creates manufactured scarcity, aiming to draw consumers into its ecosystem.

Last year, Compass filed an antitrust lawsuit against Zillow, challenging Zillow's policy that requires all publicly advertised homes to be listed on the Multiple Listing Service within one business day. Compass alleges Zillow is using monopoly power to harm competitors.

A federal judge recently rejected Compass's attempt to obtain a preliminary injunction. The judge found that Compass failed to demonstrate Zillow possesses monopoly power, a key element for an antitrust claim.

The article argues that Zillow's policy promotes consumer benefit by ensuring equal access to listings across all search platforms. In contrast, Compass's strategy is seen as benefiting realtors at the expense of home buyers by restricting inventory access. The case highlights ongoing debates about fair practices and transparency in the real estate industry, drawing parallels to recent settlements regarding commission structures.