Compass Drops 'Zillow Ban' Lawsuit

Compass dropped its lawsuit against Zillow—alleging abuse of monopoly—this week after Zillow dropped its controversial 'Zillow ban'.

The brokerage brought the lawsuit in June 2025, accusing Zillow of leveraging its market position for how real estate listings are marketed.

Compass asked federal judges to block Zillow from implementing a controversial announcement that would prompt the United States' largest real estate portal to ban listings not uploaded to the MLS—and therefore to ban listings that are not uploaded to the MLS—and therefore Zillow itself. At the time, Compass accused Zillow of "enacting an exclusionary policy to block real estate search rivals like Compass from competing head-to-head."

Nine months later, Compass has dropped the lawsuit after a ruling suggesting it would fail in its antitrust claims against Zillow.

Meanwhile, Zillow adjusted its listing rules days before the lawsuit was dropped, ending the Zillow ban. In its update, Zillow said it will no longer ban listings that are advertised on a “public-facing website, mobile app, or internet real estate portal. Furthermore, Zillow also announced the shock launch of a 'Preview' product for off-market and pre-market properties.

Compass said:

The end of the ‘Zillow Ban’ is a major victory for homesellers and their real estate professionals. With homesellers and their real estate professionals no longer subject to punishment by Zillow for publicly marketing a home, Compass will voluntarily dismiss its lawsuit.

In other words, Zillow is now on the same side of the fence as Compass, and there's no need for a lawsuit.