Zillow's private listings ban can proceed, federal judge rules

A federal judge allowed Zillow's policy banning certain private home listings to remain in place while litigation continues, finding that Compass had not shown Zillow engaged in anticompetitive behavior or held monopoly power.

A federal judge has allowed Zillow's policy banning certain private home listings to remain in effect for now. Compass sued Zillow in June, arguing the policy was anticompetitive because Compass' business relies on private listings. Zillow said the policy prevents rival brokerages from withholding inventory and fragmenting the market. The judge's ruling followed a four-day hearing in New York federal court held last November. Key facts: - District Judge Jeannette Vargas found that Compass did not show Zillow engaged in anticompetitive conduct or that Zillow had monopoly power in the home search market. - The court allowed Zillow's ban on listings previously shown only to select buyers to stay in place while the lawsuit proceeds. - Compass filed the suit seeking to block the policy and said its litigation will continue after the ruling. - Zillow characterized the lawsuit as baseless and said the policy protects broader access to listings. Summary: The ruling leaves Zillow's listing policy active for the time being and does not end the legal dispute between Zillow and Compass. The case highlights a broader industry debate over private or "pocket" listings and recent changes to multiple-listing service rules. Undetermined at this time.