- Legal Challenges Overview
A. Antitrust Lawsuit from Compass
Issue: Compass, a leading real estate brokerage, filed a federal lawsuit against Zillow in June 2025. The dispute centers on a new Zillow policy that prohibits listings from appearing on Zillow if they were shared publicly elsewhere more than 24 hours earlier.
Compass’s Argument: This policy unfairly targets its phased release strategy—where listings are first shared internally, then on Compass’s site, and only later on broader platforms like the MLS and Zillow. Compass claims Zillow is using its dominant platform to “coerce agents” and suppress competition.
Zillow’s Response: Zillow defends the rule as a measure to ensure transparency and equal access for all buyers, not favoritism toward any brokerage.
B. Copyright Lawsuit from CoStar Group
Issue: In August 2025, CoStar Group—including Homes.com and Apartments.com—filed a federal lawsuit accusing Zillow of using nearly 47,000 copyrighted property images without permission, many of which bear CoStar watermarks.
Allegations: CoStar claims Zillow siphoned these photos to bolster its rental listings, and further distributed them to partner sites like Realtor.com and Redfin via syndication.
- Key Stakes & Industry Impact
Real Estate Marketing & Listing Practices: Zillow’s aggressive listing ban policy could reshape how agents choose to list properties—shifting power dynamics in digital listing dominance.
Copyright Violations & Content Ownership: The CoStar suit raises broader questions about how online platforms handle licensed media—and the protections owed to content creators and owners.
Marketplace Control & Transparency: Together, these cases highlight scrutiny over Zillow’s market influence—both through listing control and content use. The legal outcomes could significantly recalibrate industry norms.
Summary Table
Legal Case Plaintiff Core Allegation Potential Impact
Antitrust (Compass) Compass Zillow bans early-stage listings, undermining competition Could affect listing strategies and platform access
Copyright (CoStar) CoStar Zillow used 47k+ proprietary images without authorization Could lead to stricter image licensing and enforcement
- Conclusion
Zillow—long regarded as the go-to platform for buying and selling homes—is now at the center of two high-profile legal fires:
Compass’s antitrust claim confronts Zillow’s listing policy, arguing it stifles agent autonomy and consumer choice.
CoStar’s copyright lawsuit questions Zillow’s use of media assets, highlighting the importance of respecting intellectual property in real estate.
These cases have the potential to reshape the real estate digital ecosystem—from how listings are published, to what content platforms can ethically leverage. The outcomes may enforce greater competition, transparency, and legal accountability across the sector.