{"id":59823,"date":"2025-05-01T03:05:10","date_gmt":"2025-05-01T01:05:10","guid":{"rendered":"https:\/\/housesmarketplace.com\/compass-has-sued-an-mls-history-could-shed-light-on-its-antitrust-claims\/"},"modified":"2025-05-01T03:05:10","modified_gmt":"2025-05-01T01:05:10","slug":"compass-has-sued-an-mls-history-could-shed-light-on-its-antitrust-claims","status":"publish","type":"post","link":"https:\/\/housesmarketplace.trio-tv.com\/ru\/compass-has-sued-an-mls-history-could-shed-light-on-its-antitrust-claims\/","title":{"rendered":"Compass \u043f\u043e\u0434\u0430\u043b \u0432 \u0441\u0443\u0434 \u043d\u0430 MLS. \u0418\u0441\u0442\u043e\u0440\u0438\u044f \u043c\u043e\u0436\u0435\u0442 \u043f\u0440\u043e\u043b\u0438\u0442\u044c \u0441\u0432\u0435\u0442 \u043d\u0430 \u0435\u0433\u043e \u0430\u043d\u0442\u0438\u043c\u043e\u043d\u043e\u043f\u043e\u043b\u044c\u043d\u044b\u0435 \u043f\u0440\u0435\u0442\u0435\u043d\u0437\u0438\u0438"},"content":{"rendered":"<div>\n<p>The antitrust lawsuit <a href=\"https:\/\/www.housingwire.com\/articles\/compass-files-an-antitrust-suit-against-nwmls-over-its-ccp\/\">filed<\/a> last week by <strong><a href=\"https:\/\/www.housingwire.com\/tag\/compass\/\">Compass<\/a><\/strong> against <strong><a href=\"https:\/\/www.housingwire.com\/tag\/northwest-mls\/\">Northwest MLS<\/a> <\/strong>(NWMLS) has <a href=\"https:\/\/www.housingwire.com\/articles\/real-estate-industry-reacts-to-compass-nwmls-lawsuit\/\" target=\"_blank\" rel=\"noreferrer noopener\">generated a lot of talk<\/a>, but it is far from the first time a brokerage has sued an MLS over an alleged antitrust injury.\u00a0<\/p>\n<p>There is a <a href=\"https:\/\/www.housingwire.com\/articles\/nar-looks-to-dismiss-eytalis-suit-in-texas-three-way-membership-agreements\/\" target=\"_blank\" rel=\"noreferrer noopener\">slate of recently filed suits<\/a> \u2014 as well as <a href=\"https:\/\/www.housingwire.com\/articles\/realtor-owned-mls-access-for-all-agents-nar-austin-phoenix\/\" target=\"_blank\" rel=\"noreferrer noopener\">those filed in the 1970s and \u201980s<\/a> \u2014 that allege antitrust injury. But these focus on the <a href=\"https:\/\/www.housingwire.com\/tag\/national-association-of-realtors\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>National Association of Realtors\u2019 <\/strong><\/a>(NAR) three-way membership agreement and access to the <a href=\"https:\/\/www.housingwire.com\/tag\/mls\/\">MLS<\/a>.<\/p>\n<p>When it comes to how listings are displayed or controlled, a better example is a <a href=\"https:\/\/www.ftc.gov\/legal-library\/browse\/cases-proceedings\/061-0088-realcomp-ii-ltd-matter\" target=\"_blank\" rel=\"noreferrer noopener\">legal battle <\/a>involving Michigan-based MLS<strong> Realcomp II <\/strong>and the <a href=\"https:\/\/www.housingwire.com\/tag\/federal-trade-commission\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Federal Trade Commission<\/strong><\/a><strong> <\/strong>(FTC) that ended nearly 15 years ago.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-trip-down-memory-lane\">Trip down memory lane<\/h2>\n<p>The RealComp II suit stemmed from a rule adopted by the MLS in 2001, which stated that \u201clisting information downloaded and\/or otherwise displayed pursuant to IDX shall be limited to properties listed on an exclusive right to sell (ERTS) basis.\u201d <\/p>\n<p>As a result of this policy, listings using <a href=\"https:\/\/www.bankrate.com\/real-estate\/exclusive-right-to-sell\/#:~:text=With%20the%20exclusive%20right%20to,exclusive%20right%20to%20sell%20arrangements.\" target=\"_blank\" rel=\"noreferrer noopener\">exclusive agency (EA) listing agreements<\/a> and not ERTS agreements would not be transmitted to \u201capproved\u201d real estate listing websites. These included Realcomp member IDX websites, <strong>Moveinmichigan.com<\/strong> and <a href=\"https:\/\/www.housingwire.com\/tag\/realtor-com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Realtor.com<\/strong><\/a>.\u00a0<\/p>\n<p>In their respective suits, lead plaintiffs <strong>Home Quarters Real Estate<\/strong>, a defunct discount brokerage that utilized EA agreements, and Eugene Allan, a Michigan home seller, claimed that they were harmed by Realcomp\u2019s policy. They claimed it prevented discount <a href=\"https:\/\/www.housingwire.com\/tag\/brokerage\/\">brokerages<\/a> from competing in the marketplace, forcing sellers to pay more for brokerage services.\u00a0<\/p>\n<p>\u201cThrough these anti-competitive policies, Realcomp members using ERTS listings profited by illegally inhibiting competition from brokers (a) using or desiring to use EA or other discount listings within Realcomp\u2019s MLS, and (b) desiring to expose EA and other discount listings to the public through feeds from Realcomp\u2019s MLS to the Approved Websites,\u201d states the Allan complaint, which was originally filed in October 2010.<\/p>\n<p>These claims echo those made by the FTC in its October 2006 <a href=\"https:\/\/www.ftc.gov\/sites\/default\/files\/documents\/cases\/2006\/10\/061012admincomplaint_0.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">administrative complaint<\/a>.<\/p>\n<p>The two lawsuits filed by Home Quarters were dismissed and the Allan suit ended with a settlement. Additionally, the FTC\u2019s action resulted in a <a href=\"https:\/\/www.ftc.gov\/sites\/default\/files\/documents\/cases\/2009\/11\/091102realcomporder.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">final order<\/a> requiring Realcomp \u201cto provide its members non-discriminatory access to non-traditional and lower-price listings on its MLS and to stop preventing such listings from being sent to its public real estate sites.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-fast-forward-to-2025\">Fast forward to 2025<\/h2>\n<p>Compass\u2019s suit, like the Home Quarters case, alleges that the MLS defendant is stifling competition by not allowing the brokerage plaintiff to fully utilize its \u201cunique business model.\u201d But unlike Home Quarters, Compass operates as a traditional brokerage.<\/p>\n<p>While the FTC case ended with the ruling that Realcomp\u2019s policy stifled competition, it remains to be seen how the court will view the allegations Compass has made against NWMLS.\u00a0<\/p>\n<p>In its suit filed last week in U.S. District Court in <a href=\"https:\/\/www.housingwire.com\/tag\/seattle\/\">Seattle<\/a>, Compass claims the NWMLS \u2014 which is <a href=\"https:\/\/www.housingwire.com\/articles\/windermere-ob-jacobi-real-estate-industry\">owned and controlled<\/a> by some of the largest brokerages in the Seattle area \u2014 is a monopoly and that Compass is being harmed by its anticompetitive rules. Chiefly, it says that NWMLS\u2019s listing policy, unlike NAR\u2019s <a href=\"https:\/\/www.housingwire.com\/tag\/clear-cooperation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Clear Cooperation Policy <\/a>(CCP), does not allow for office exclusives.\u00a0<\/p>\n<p>\u201c[Office exclusives] can be further disfavored by MLSs, whose financial incentives are directly correlated to the number of listings included on their database,\u201d the complaint claims. \u201cThe fewer properties for sale outside of the MLS, especially any potentially included on another listing network database, the more the MLS benefits financially.\u201d<\/p>\n<p>According to Paul Rogers, an antitrust law professor at Southern Methodist University\u2019s Dedman School of Law, in order for Compass to win its Sherman Antitrust Act claim, it will have to check several boxes.<\/p>\n<p>\u201cFirst, they have to prove that NWMLS is a monopoly,\u201d Rogers said. \u201cThen the second question is, what kind of conduct are they engaging in? Are they engaging in conduct which harms consumers, and are they using their monopoly power to maintain their monopoly by what we call exclusionary conduct?\u201d<\/p>\n<p>By getting that far into the antitrust analysis, Rogers said Compass will have to prove that the rules harming consumers are also harming competition.\u00a0<\/p>\n<p>\u201cWhat the plaintiffs have to show is that the consumers are harmed, and because they\u2019re harmed, so are competitors,\u201d Rogers said.<\/p>\n<p>This is exactly what Home Quarters and Allan tried to prove in their suits against Realcomp, and what was eventually found to be true via the FTC\u2019s action.\u00a0<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-what-about-zillow\">What about Zillow?<\/h2>\n<p>Although a lot of attention has been focused on Compass\u2019s fight with NWMLS, Compass CEO <a href=\"https:\/\/www.housingwire.com\/tag\/robert-reffkin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Robert Reffkin<\/a> has also made some public statements claiming that <a href=\"https:\/\/www.housingwire.com\/tag\/zillow\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Zillow<\/strong><\/a> is also engaging in anticompetitive behavior.\u00a0<\/p>\n<p>Earlier this month, <a href=\"https:\/\/www.housingwire.com\/articles\/zillows-pre-emptive-strike-on-private-listings\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zillow announced<\/a> a ban on all listings that have been publicly marketed without being entered in the MLS. Reffkin later claimed in a <a href=\"https:\/\/www.linkedin.com\/posts\/robertreffkin_zillows-policy-of-refusing-to-display-valid-activity-7320048451956707329-oD4R?utm_source=share&amp;utm_medium=member_desktop&amp;rcm=ACoAAC_yWIoBP0EBi01DxhDSINs6QEwKTapmPmY\" target=\"_blank\" rel=\"noreferrer noopener\">post<\/a> on <strong>LinkedIn<\/strong> that this \u201cconstitutes platform-based exclusionary conduct similar to the conduct successfully challenged by the DOJ in <a href=\"https:\/\/www.justice.gov\/opa\/pr\/department-justice-prevails-landmark-antitrust-case-against-google\" target=\"_blank\" rel=\"noreferrer noopener\">United States v. <strong>Google<\/strong> in 2023<\/a>.\u201d\u00a0<\/p>\n<p>Reffkin went on to say that, if Zillow was \u201csuccessful in suppressing off MLS public marketing in US real estate, it will prove its market dominance.\u201d According to <a href=\"https:\/\/www.similarweb.com\/website\/zillow.com\/vs\/realtor.com\/#traffic\" target=\"_blank\" rel=\"noreferrer noopener\">data<\/a> from <strong>SimilarWeb<\/strong>, Zillow had an average of 353.8 million visitors during the first three months of the year, more than double that of its next largest competitor, <strong>Realtor.com<\/strong> (125.3 million visitors).<\/p>\n<p>\u201cZillow banning homeowners who don\u2019t give them their publicly marketed listings is like Google saying \u2018If you advertise anywhere, you must advertise on Google. And if I see you advertise anywhere else \u2014 even a social post, newsletter or postcard \u2014 for more than one day and you haven\u2019t advertised on Google, then I\u2019m going to ban you from ever being on Google,\u2019\u201d the post stated. \u201cIs Zillow really protecting the buyer and seller or is Zillow protecting the MLS and its free listing supply chain?\u201d<\/p>\n<p>Due to Zillow\u2019s commanding market share of listing portal web traffic, Rogers said he can see where Reffkin has drawn parallels between the real estate giant and Google. But if a suit were to arise, Compass and Reffkin would still have quite a few things to prove.\u00a0<\/p>\n<p>\u201cZillow, like Google, is an independent entity with a large market share, so in a potential lawsuit, if it was found to be a monopoly power, that would be a big problem for it,\u201d Rogers said. <\/p>\n<p>\u201cBut then they would have to prove that consumers were being harmed by Zillow\u2019s actions as a monopoly power, so they would probably argue that Zillow is harming consumers by not showing those listings that were publicly marketed before showing up in the MLS. But the question is, do they have the obligation to do this as a monopolist?\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-will-history-repeat-itself\">Will history repeat itself?<\/h2>\n<p>As the battle over CCP becomes more litigious, it is still a possibility that a government entity may get involved. But <a href=\"https:\/\/www.housingwire.com\/tag\/steve-murray\/\" target=\"_blank\" rel=\"noreferrer noopener\">Steve Murray<\/a>, the co-founder of <strong>RealTrends Consulting<\/strong> and an expert witness for the FTC in its suit against Realcomp, does not believe that the FTC will reprise the role it had in changing Realcomp\u2019s policy.<\/p>\n<p>\u201cI think in this case it would more likely be the <a href=\"https:\/\/www.housingwire.com\/tag\/department-of-justice\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Department of Justice<\/strong><\/a> (DOJ),\u201d Murray said. \u201cThe FTC, their purview is harmful consumer conduct. The DOJ antitrust division looks at that as well, but it is normally business issues like monopolies that affect consumers, which is what they looked at in the 2023 Google suit.\u201d<\/p>\n<p>Attorney Rob Hahn, the founder and CEO of <a href=\"https:\/\/www.housingwire.com\/tag\/las-vegas\/\" target=\"_blank\" rel=\"noreferrer noopener\">Las Vegas<\/a>-based online property exchange <strong>Decentre Labs<\/strong>, shared a similar viewpoint on his <a href=\"https:\/\/notoriousrob.substack.com\/p\/brief-reaction-to-compass-v-nwmls\" target=\"_blank\" rel=\"noreferrer noopener\">NotoriousROB blog<\/a>.\u00a0<\/p>\n<p>\u201cThe bigger threat, as I see it, comes not from Compass but from the DOJ where the guy who just took over the #2 position in the Antitrust Division has said very clearly in the past that the MLS is a problem. The lack of competition for listing services is a problem for the DOJ,\u201d he wrote. \u201cThe DOJ might take [the Compass v. NWMLS] case as an opportunity to intervene, so it doesn\u2019t have to bring its own action, and send a clear message to everybody that they view a lack of choice for brokers and agents in any given market for listing services to be a problem.\u201d<\/p>\n<p>The DOJ issued a second <a href=\"https:\/\/www.housingwire.com\/articles\/is-nar-ready-to-rumble-with-doj\/?__hstc=43385018.5f1ddc53e010c2865f96cc27f29fdd65.1672670841746.1701285129775.1701292745862.530&amp;__hssc=43385018.4.1701788316135&amp;__hsfp=1666931457\" target=\"_blank\" rel=\"noreferrer noopener\">civil investigative demand<\/a> into CCP back in 2021. But it recently wrote in <a href=\"https:\/\/www.housingwire.com\/articles\/is-the-doj-really-the-ccp-boogeyman-for-realtors\/\" target=\"_blank\" rel=\"noreferrer noopener\">a footnote<\/a> in an <a href=\"https:\/\/www.housingwire.com\/articles\/the-doj-isnt-done-with-realtors-and-their-commissions\/\" target=\"_blank\" rel=\"noreferrer noopener\">amicus brief<\/a> in the Nosalek commission suit that \u201cThe Division has not taken a position that such policies standing alone (i.e., without mandated MLS publication of offers of compensation or exceptions benefitting primarily large brokerages) are anticompetitive.\u201d\u00a0<\/p>\n<p>Despite this, it is possible that the claims made by Compass in its suit against NWMLS \u2014 and in a potential lawsuit against Zillow \u2014 could change the DOJ\u2019s neutral stance. This would ratchet up the intensity of the CCP debacle.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The antitrust lawsuit filed last week by Compass against Northwest MLS (NWMLS) has generated a lot of talk, but it is far from the first time a brokerage has sued an MLS over an alleged antitrust injury.\u00a0 There is a slate of recently filed suits \u2014 as well as those filed in the 1970s and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-59823","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Compass has sued an MLS. 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History could shed light on its antitrust claims - Houses Marketplace","og_description":"The antitrust lawsuit filed last week by Compass against Northwest MLS (NWMLS) has generated a lot of talk, but it is far from the first time a brokerage has sued an MLS over an alleged antitrust injury.\u00a0 There is a slate of recently filed suits \u2014 as well as those filed in the 1970s and [&hellip;]","og_url":"https:\/\/housesmarketplace.trio-tv.com\/ru\/compass-has-sued-an-mls-history-could-shed-light-on-its-antitrust-claims\/","og_site_name":"Houses Marketplace","article_published_time":"2025-05-01T01:05:10+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"\u041d\u0430\u043f\u0438\u0441\u0430\u043d\u043e \u0430\u0432\u0442\u043e\u0440\u043e\u043c":"admin","\u041f\u0440\u0438\u043c\u0435\u0440\u043d\u043e\u0435 \u0432\u0440\u0435\u043c\u044f \u0434\u043b\u044f \u0447\u0442\u0435\u043d\u0438\u044f":"7 \u043c\u0438\u043d\u0443\u0442"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/housesmarketplace.trio-tv.com\/ru\/compass-has-sued-an-mls-history-could-shed-light-on-its-antitrust-claims\/#article","isPartOf":{"@id":"https:\/\/housesmarketplace.trio-tv.com\/ru\/compass-has-sued-an-mls-history-could-shed-light-on-its-antitrust-claims\/"},"author":{"name":"admin","@id":"https:\/\/housesmarketplace.trio-tv.com\/#\/schema\/person\/1276f6cf52b5de6bd341c72ea8c75b0b"},"headline":"Compass has sued an MLS. 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