Compass Sues Zillow Over Listing Policy in Real Estate Clash

Real estate brokerage Compass is taking Zillow to court, accusing the listing giant of stifling competition with a new policy requiring public home listings to appear on Zillow within 24 hours. Compass argues the so-called “Zillow ban” restricts home sellers’ flexibility and unfairly benefits Zillow by monopolizing listing visibility — a move Compass says forces sellers to play by Zillow’s rules or lose out on exposure.

Zillow defends the rule as a push for transparency, saying that hiding listings harms consumers and limits housing access. But Compass claims the mandate disrupts its 3-phase marketing strategy, which includes a private listing stage and a “coming soon” rollout before homes go fully live. The lawsuit also names Redfin and eXp Realty as co-conspirators, though they are not official defendants.

This lawsuit marks a flashpoint in the battle between traditional brokerages and listing platforms over who controls the homebuying process. With home shoppers increasingly starting their search online, control over listings is a powerful edge — and Compass is betting this legal fight will reshape the rules.