WASHINGTON (dpa-AFX) - Compass a property brokerage company, has withdrawn its lawsuit against Zillow after Zillow revised its home-listing rules, ending a dispute over how pre-market property listings can be displayed online.
Compass had challenged Zillow's rule requiring any publicly marketed home to appear on Zillow within one day or be excluded from the platform.
The brokerage argued the policy, which it called the 'Zillow ban,' was anti-competitive and harmful to sellers using 'coming soon' marketing strategies.
Under Compass's three-phase approach, homes can first appear as private or limited-access pre-market listings before being broadly distributed. Critics say such listings reduce transparency by obscuring how long a property has actually been for sale and limiting buyer visibility.
A federal judge in New York last month declined Compass's request to block Zillow's policy, finding that Compass had not shown a strong likelihood of succeeding on its antitrust claims.
This week, Zillow amended its policy to allow listings marketed on public-facing websites, mobile apps, or internet real estate portals, a change that now permits Compass listings displayed through its recent partnership with Redfin.
Zillow also introduced Zillow Preview, a feature offering pre-market listings from partner brokerages including Keller Williams and RE/MAX.
Compass said the rule change represents a major win for homesellers and agents, while Zillow maintained that private listing networks continue to reduce market transparency and fair access for buyers.
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