Above, left to right: Zillow CEO Jeremy Wacksman, MRED CEO Rebecca Jensen and Compass International Holdings CEO Robert Reffkin
Against the backdrop of a nationwide fight over listing access, data control and marketing strategies, Chicago has become a flashpoint, with MLS Midwest Real Estate Data (MRED) recently cutting Zillow off from its listing feeds, ostensibly over a handful of properties the portal refused to carry
On Friday, Judge John Tharp stepped into the middle of that fight, partially denying Zillow’s request to stop MRED and Compass from carrying out what it calls an illegal boycott but forcing the MLS to continue feeding Zillow listings as both parties gear up for a protracted battle.
“Today’s ruling restores listing access, and Zillow will continue its fight to ensure this harmful conduct doesn’t become normalized,” Zillow wrote in a blog post Friday evening.
However, the portal is also required to restore a handful of Compass listings it previously banned due restrictions it placed on listings that were previously marketed “privately,” which Compass simultaneously celebrated as an affirmation that its “seller choice” principals would hold up in court.
“The judge’s ruling will reverberate across the country and eliminate Zillow’s ability to ban listings. The judges decision preserves seller choice,” the brokerage wrote on social media.
Friday evening, it appeared both parties had followed through with that order, as Zillow was displaying around 5,000 listings in Chicago—roughly the number that it showed before MRED cut the feed Wednesday morning. The Compass properties Zillow previously banned were also appearing on Zillow’s platform as active.
Taken together, the ruling likely means little will change over the coming days and weeks, as Tharp ordered a new hearing for early next week, and asked all parties to agree on a schedule for discovery and formal arguments on the underlying issues.
Zillow still has a pending request to prevent MRED and Compass from any further action to disrupt its listing feeds, and MRED is arguing the lawsuit should be thrown out and the dispute moved to arbitration.
The portal had also claimed yesterday that “panicked” agents had been reaching out about the MRED ban, and framed the loss of its feed as a huge setback for agents and consumers. MRED called those arguments spurious, saying that Zillow had plenty of warning that it was violating revised rules and that the only harm is to Zillow’s business, as Chicago listings were widely available on other portals.
The next hearing in the case is scheduled for Tuesday, May 26.
This is a breaking story. Stay tuned to RISMedia for updates.
