Zillow sues MRED and Compass over private listings
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Zillow sued Chicago-area listing service MRED and brokerage giant Compass this week, accusing them of hiding home listings and colluding to push Zillow out of the market.
Why it matters: The legal battle could shape how homes are sold in Chicago, one of the largest housing markets, and raises critical questions about transparency and access.
State of play: According to the complaint filed Wednesday in federal court in Chicago, the online real estate marketplace accuses MRED, the Chicago area's multiple listing service (MLS), and Compass, the country's largest real estate brokerage, of forming a monopoly, making it nearly impossible for others to compete.
Catch up quick: MRED last month opened its platform to real estate brokers across the U.S., not just the Midwest, and Compass jumped at the chance to get its listings on MRED, including its Private Listing Network (PLN).
- Private listings are not viewable to the general public but shared privately among licensed agents.
The other side: "Compass believes homeowners should have the right to decide how to market their homes," a company spokesperson told Axios.
- "We remain committed to advocating for homeowner choice and an open, competitive marketplace. The industry is evolving to give consumers more choice, and we support that progress."
- MRED did not immediately respond to a request for comment on Wednesday.
Zillow sought to ban private listings last year, saying the practice places listings "behind a velvet rope" by creating new listing standards.
Yes, but: Zillow hasn't been enforcing these standards in Chicago because MRED threatened to cut Zillow off from all its listings if private listings were not allowed, the lawsuit alleges.
- That would push Zillow out of the market completely since MRED is the MLS for all of Chicago, according to a Zillow spokesperson.
Context: Zillow says private listings reduce transparency by not showing all buyers what's for sale.
- Zillow examined 40,000 listings on the MRED on one day in 2025 and determined that private listings were more often posted in majority-white neighborhoods than in majority-non-white neighborhoods.
- Compass and other supporters of private listings say sellers prefer it because it allows them to target specific buyers and exclude data like days on market and price history, which agents argue can negatively affect sellers.