Zillow, MRED, Compass Resume Listing Control Fight in Court

Zillow, Midwest Real Estate Data (MRED), and Compass are back in federal court this week for a two-day hearing that could determine the immediate future of Chicago-area real estate listing data access. The hearing, which began on June 10, 2024, will address Zillow's request for a preliminary injunction to compel MRED to continue providing it with listing feeds. Zillow argues that MRED, a multiple listing service owned by brokerages including Compass, unlawfully terminated its access to listing data in retaliation for Zillow's antitrust lawsuit filed in March 2024.

Zillow's lawsuit alleges that MRED and its owners, including Compass, engaged in anticompetitive practices by restricting access to listing information. Zillow claims this action violates the Sherman Act and aims to stifle competition in the online real estate marketplace. The company asserts that its ability to serve consumers and agents in the Chicago metropolitan area is significantly hampered by the loss of this data, which is crucial for its platform's functionality and accuracy. The preliminary injunction, if granted, would force MRED to reinstate the data feeds while the broader antitrust case proceeds.

Compass, a major brokerage and a significant owner of MRED, is a key defendant in the antitrust suit. Zillow contends that Compass and other brokerages are attempting to protect their market share by limiting the data available to competing platforms. The outcome of this preliminary injunction hearing could set a precedent for how MLSs and brokerages manage data access for online real estate portals. The court's decision will impact not only Zillow's operations in the Chicago market but also the ongoing legal battle over control and distribution of real estate listing information nationwide.

This legal confrontation highlights the ongoing tension between traditional real estate gatekeepers and technology companies seeking to disrupt the industry. The ability to access and utilize comprehensive listing data is fundamental to the business models of online real estate platforms like Zillow. MRED, on the other hand, argues that it has the right to control the distribution of its data and that Zillow's actions are an attempt to gain an unfair advantage. The court's ruling will be closely watched by stakeholders across the real estate sector.