The history of Clear Cooperation
As this fight between Compass and Zillow has its roots in the debate surrounding the National Association of Realtors’ (NAR) Clear Cooperation Policy (CCP), the complaint naturally takes some time to dissect the rule’s history. Voted on in November 2019, CCP went into effect in May 2020. In the complaint, Compass claims that the rule was first proposed as a response to its adoption of an “inventory-based” strategy, which it says it developed to “differentiate itself from competing brokerages in 2018-2019 by experimenting with Coming Soon listings and later Private Exclusives.”
“Private Exclusives were marketed exclusively within the Compass brokerage to other Compass agents and their clients. Coming Soons were displayed publicly on Compass’s website and other areas on the internet, but not in local MLSs,” the complaint states.
Compass claims that in response to this, NAR’s Board of Directors adopted CCP, which requires agents to enter a listing into their local MLS within one business day of publicly marketing the listing. The policy does, however, contain a carve-out allowing for “office exclusives,” which Compass claims its Private Exclusives qualify as.
“It was widely known in the real estate industry that NAR’s CCP efforts—supported by Zillow and other competitors of Compass—were targeted at Compass’s early innovative efforts,” the complaint states. “In its early formulation, the CCP was even referenced as the ‘Compass Rule’ within the industry, clear retaliation against Compass for challenging industry trends.”
According to Compass, Zillow did not feel that the rule went far enough, petitioning NAR in September 2024 to strengthen CCP, arguing in a letter that “NAR should expand CCP to prohibit office exclusives.” While NAR did change CCP in launching its new Multiple Listing Options for Sellers (MLOS) Policy, which created delayed marketing exempt listings, the office exclusive carve-out remains.
As Zillow expands into other facets of the home-buying and selling process, through a partnership with iBuyer Opendoor and the launch of Zillow Home Loans, in order to help these businesses grow, Compass claims that “Zillow must maintain its monopoly in the home search market.”
“To protect and maintain its monopoly, Zillow is choosing to sacrifice short-term profits and terminate a profitable and pre-existing course of dealing with Compass, as well as all the other brokerages that currently list properties on Zillow after pre-marketing off Zillow but may now face listing bans under the Zillow Ban,” the complaint states. “The Zillow Ban thus represents textbook monopolistic conduct, through which Zillow is taking actions that otherwise would be to its detriment to enhance and maintain its monopoly power.”
Conspiracy claims
In addition to the claims of monopoly creation, Compass also alleges that Zillow conspired with Redfin, which enacted a similar policy slated to go into effect in September, and eXp Realty, which was the first firm to sign on to Zillow’s policy.
“Zillow’s plan eventually gave rise to promulgation of the Zillow Ban and a Zillow-led conspiracy with co-conspirator Redfin and co-conspirator eXp to boycott Compass,” the complaint states. “Zillow, co-conspirator eXp, and co-conspirator Redfin knew that these policies would harm Compass and hoped that slamming the door on Compass’s approach would arrest the wave of support and similar strategies that had started to spread.”
Compass claims that the opportunity for this alleged collusion came about via a deal to syndicate Redfin’s multifamily rental listings. The Federal Trade Commission (FTC) is reportedly investigating the relationship between Zillow and Redfin, which was acquired by Rocket Companies in March 2025. The FTC also investigated Zillow’s acquisition of Trulia, which closed in 2015.
Additionally, the complaint claims that just 41 minutes after Zillow announced its policy, Redfin CEO Glenn Kelman texted Reffkin requesting a call “despite the two executives seldom speaking with one another.”
In a roughly 45-minute call with multiple Redfin and Compass executives and counsel present on the line, Compass claims that Kelman revealed that while he agreed with some of Reffkin’s points “regarding pre-marketing and Zillow’s negative insights, Redfin had agreed to follow Zillow’s lead and would publicly announce as much.”
“During the call, Mr. Kelman revealed information suggesting that Redfin and Zillow had conspired,” the complaint states. “Mr. Kelman asked Mr. Reffkin whether Mr. Reffkin had spoken to Zillow’s CEO before Zillow’s announcement and implied that Mr. Kelman had spoken to Zillow before the announcement.”
The complaint claims that Kelman “pushed Compass to listen to Zillow,” suggesting that Zillow or Redfin “would reward Compass with pre-marketing options,” and that Zillow “ would make it up to Compass financially if Compass were to change or slow its pre-marketing strategies or follow the policies.”
“Critically, Zillow then raised the same idea to Compass executives the next day on April 11, 2025,” the complaint states. “That Zillow suggested the same idea—so soon after Mr. Kelman told Compass that Zillow would do so—demonstrates the pre-existing conspiracy between Zillow and co-conspirator Redfin.”
As for eXp, Compass claims that Zillow also engaged in similar discussions with the eXp Realty executives.
“On information and belief, Zillow and co-conspirator eXp engaged in discussions about these policies and agreed to adopt them jointly, culminating in a public announcement,” the filing states.
Compass postulates that eXp’s interest in allegedly conspiring with Zillow on this policy is due to Zillow’s large audience and widespread consumer brand recognition.
Quid pro no
In addition to meetings with Redfin and eXp, the complaint also details a meeting between Compass and several Zillow executives, including Jeremy Wacksman, Lloyd Frick, Errol Samuelson, Jeremy Hofmann, Brad Owens and Jun Choo.
“During the meeting, Mr. Wacksman and Mr. Hofmann warned Compass multiple times that Zillow ‘will not allow Compass to have listings that are not on Zillow,’” the filing states.
When told that other brokerage firms including Douglas Elliman and Sotheby’s International Realty, were launching their own private listing networks, the complaint claims that Hofmann said Zillow “would not allow that to happen.” He allegedly had the same response to information about the private listing network operated by Midwest Real Estate Data (MRED) an Illinois-based, non-Realtor owned MLS.
Additionally, during this meeting, Compass claims Zillow offered it “financial upside” if it abandoned its three-phase marketing strategy, which Kelman also allegedly referred to during Redfin’s call with Compass.
“Like other monopolists trying to preserve their dominance, Zillow had offered to essentially pay off Compass not to compete,” the complaint states. “Nine days later, with Compass having refused the payoff not to compete, Zillow made good on its threat and announced the Zillow Ban.”
Compass is demanding a jury trial, so if not settled or dismissed beforehand, it may be up to a jury to decide how to view all of this.
In an emailed statement, a Zillow spokesperson said the claims in the lawsuit are “unfounded,” but the firm has not yet responded to questions about the alleged collusion.
eXp Realty CEO Leo Pareja wrote in an email that “any implication of co-conspiracy is categorically false. Our business strategies were developed independently in response to a rapidly evolving real estate market.”
Redfin did not return a request for comment.
