- According to Bloomberg, Compass filed the lawsuit in June, claiming that Zillow engaged in anticompetitive practices by restricting listings.
- Resolving the lawsuit lifts a burden for Zillow, since legal expenses had negatively impacted its financial performance, as per the report.
- Compass aimed to create a private listings network that would allow its agents to market properties before they appeared on public platforms.
Zillow Group (ZG) shares climbed 2% on Wednesday after Compass Inc. (COMP) reportedly dropped its lawsuit against the real estate platform, concluding a protracted legal dispute over home-listing regulations.
Compass filed the lawsuit in June, claiming that Zillow engaged in anticompetitive practices by restricting listings not posted to a local multiple-listing service from being publicly marketed within 24 hours, according to a report from Bloomberg News that cited court filings.
As the largest real estate brokerage in the U.S., Compass aimed to create a private listings network that would allow its agents to market properties before they appeared on public platforms.
Lawsuit Details
In December, U.S. District Judge Jeannette Vargas rejected Compass’s bid for a preliminary injunction against Zillow’s policy. The judge found that Compass did not prove Zillow acted anti-competitively, reportedly noting that "Compass has not provided sufficient evidence from which it can be inferred that Zillow has monopoly power in the online home search market."
Compass claimed in court filings that Zillow’s ban was “anti-competitive.”
Ending the legal fight marks a dramatic shift in the ongoing feud between the two home-selling giants over who controls the most important asset in the real estate industry: information, the report said.
Compass’s voluntary dismissal brought the antitrust case to a close before it reached trial. Compass is currently fending off federal antitrust concerns from lawmakers and state attorney generals who urged the U.S. Justice Department to take a closer look at its $1.6 billion deal to acquire Anywhere Real Estate, its largest rival, the report said.
Retail reaction
Retail sentiment around ZG stock trended in ‘bearish’ territory amid ‘low’ message volume.
Shares in the company have fallen 33% so far in 2026.
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