Court Rejects Compass Injunction Against Zillow Listings

Judge Denies Injunction in Compass v. Zillow Case

A U.S. District Judge has rejected a preliminary injunction sought by Compass, the largest residential real estate brokerage in the U.S., against online real estate portal Zillow. The ruling allows Zillow to continue its policy of not listing homes that were marketed privately for more than one business day.

Overview of the Antitrust Claims

Compass accused Zillow of violating antitrust law by creating a monopoly on online home listings. The lawsuit claimed Zillow conspired with Redfin to enforce its listing policy. However, Judge Jeannette Vargas stated that Compass failed to show direct evidence of an anticompetitive agreement and was unlikely to succeed on the merits of its claims.

Economic and Market Reaction

Following the decision, Zillow's shares saw an increase of 2.7%, while Compass shares rose by 2.4% in afternoon trading. Zillow described the ruling as a "clear victory," while Compass CEO Robert Reffkin affirmed that the lawsuit will continue in order to protect its agents.

Conclusion

While the preliminary injunction was denied, the underlying lawsuit from Compass remains active. The market will continue to watch for further developments in this legal dispute between two major players in the U.S. real estate industry. Zillow maintains its policy promotes transparency in the housing market.

FAQ

Q: Why did the judge reject the injunction?
A: The judge found Compass was unlikely to succeed on its antitrust claims due to a lack of direct evidence showing an anticompetitive agreement between Zillow and Redfin.

Q: What was Compass's main accusation against Zillow?
A: Compass accused Zillow of monopolizing online home listings by refusing to display homes that were first marketed privately.

Source: Investing.com