Compass Inc. has settled a longstanding legal dispute with the Northwest Multiple Listing Service, the MLS that covers parts of Washington and Oregon.
The settlement of the 17-month-long lawsuit between the brokerage giant and the Pacific Northwest’s principal MLS allows Compass to maintain a pre-marketing listing type, which it markets as “First Look.”
The settlement follows a strict new Washington state law that prohibits private listings. Compass says the ban does not apply to properties marketed across its network of agents as “Private Exclusives” or “Coming Soon.”
Both sides said the settlement of the legal dispute was a victory. It allows Compass to market a property for up to 21 days as a “First Look” until it is considered “active.” But the MLS said it also prevents “off-MLS ‘shadow’ markets.”
Compass, the world’s largest residential real estate broker, has focused its business strategy heavily on private listings, which it calls Private Exclusives. These are homes for sale that are primarily marketed to the company’s own network of agents and clients, before they are easily visible to the wider public online.
“Our original objective in taking legal action against the NWMLS has been fully realized,” said Robert Reffkin, CEO of Compass. “Ultimately, we achieved what we set out to accomplish, securing vital protections for both homesellers and their real estate brokers.”
Reffkin said in a recent earnings call that the MLS business model creates an unfair system, arguing that the Compass model offers sellers more choices. But NWMLS said that its approach preserves flexibility for sellers and market transparency.
“Northwest MLS has always provided seller flexibility within an open, transparent marketplace, and our rules are constantly evolving to meet changing consumer expectations,” said Justin Haag, CEO of Northwest MLS. “We are giving sellers the flexibility they desire when preparing a home for market, while steadfastly protecting buyers from private networks.”
Case highlights Compass challenge to MLS model
Compass filed the federal antitrust lawsuit in April 2025, alleging that NWMLS operates as a regional monopolist controlling nearly 100% of Seattle-area housing data, using its rules to suppress innovation and limit consumer choices.
The lawsuit specifically targeted NWMLS rules that require any home marketed by a member to be submitted to the MLS within one business day, banning so-called “office exclusives” from later appearing on the MLS.
Compass claims these rules illegally targeted its proprietary marketing strategy, which relies heavily on Compass Private Exclusives.
In court filings, NWMLS strongly rejected these allegations, maintaining that its rules are inherently pro-competitive because they ensure an open, transparent marketplace where all buyers and brokers have equal access to all listings.
Washington was the first state to push forward a ban on private listings. Connecticut followed, while New York‘s Legislature passed its own restrictions. That bill hasn’t been delivered yet to the governor for her signature.
Reffkin’s comments on a recent earnings call offer a glimpse of how he might defend his company in a potential congressional hearing. He claimed many MLSs “abuse their power” and are anticompetitive.
Several weeks ago, Rep. Scott Fitzgerald (R-WI), chair of the House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust, sent a letter to Reffkin stating that he wanted to determine if Compass’ own practices are anticompetitive.
Sen. Elizabeth Warren (D-MA), ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, sent a similar letter afterward, requesting more information from both Compass and Midwest Real Estate Data, the MLS for the Chicago area.
Both letters follow a lawsuit pitting Compass against real estate portal Zillow Inc., which sued Compass and MRED, alleging antitrust violations. That suit is ongoing.
(Realtor.com® recently struck an agreement with Zillow to show preview listings from brokers who participate in Zillow’s preview program, in an effort to boost market transparency.)
