According to Business Insider, Compass CEO Robert Reffkin testified in federal court this week that his real estate agents feel “bullied” by Zillow’s controversial new listing policy. The so-called “Zillow ban” excludes home listings from its platform when properties were previously marketed as private “exclusives” elsewhere. Reffkin argued that only 3% of all home sales are actually Zillow transactions, despite the platform’s dominant position. The hearing before US District Judge Jeanette Vargas will determine whether to temporarily halt the ban while Compass’ lawsuit proceeds. Closing arguments are scheduled for Friday, with Zillow CEO Jeremy Wacksman also expected to testify.
Zillow’s Power Play
Here’s the thing about Zillow’s new policy: it’s basically saying “our way or the highway.” The company claims that “a listing marketed to any buyer should be marketed to every buyer,” which sounds reasonable on the surface. But the reality is more complicated. Real estate agents have been using private pre-marketing for years to test pricing, gauge interest, and sometimes create buzz around high-end properties. Now Zillow’s saying if you do that, you’re banned from their platform entirely. And the only way back? The homeowner has to fire their agent. That’s some serious leverage.
Compass Fights Back
Reffkin’s testimony was surprisingly personal – he brought his mom into it, saying she’s “absolutely terrified” of getting kicked off Zillow. But Zillow’s attorneys quickly countered with some pretty damning internal emails. Turns out Reffkin had been telling his own brokers that being on Zillow is “not necessarily in their best interest” and called Zillow’s essential status an “illusion.” So which is it? Is Zillow an indispensable platform that’s bullying agents, or is it an overrated tool that Compass doesn’t really need? The contradiction here is pretty glaring.
Bigger Picture
This isn’t just about two companies fighting. It’s about who controls the real estate transaction in the digital age. Zillow wants to be the gatekeeper – the one platform that everyone has to play by. Compass wants flexibility for agents to market properties however they see fit. And honestly, both sides have a point. Zillow’s right that transparency benefits consumers. But Compass isn’t wrong that agents should have marketing choices. The real question is whether Zillow’s policy crosses the line from fair competition into monopoly behavior.
What’s Next
Judge Vargas has a tough decision ahead. If she blocks the ban, Zillow loses control over its platform’s content. If she lets it stand, Compass agents could face real business consequences. Meanwhile, other platforms like Homes.com are apparently boosting listings that Zillow blocks, which shows there’s already competition developing. The hearing continues with Zillow’s CEO testifying, and we’ll likely get a ruling soon after Friday’s closing arguments. This could fundamentally change how homes are bought and sold online.
