Zillow Ban: Understanding Compass’s Legal Challenge and How It Affects Our Clients

Zillow’s Bold Move: Understanding Compass’s Legal Challenge and How It Affects The Krishnan Team Clients

You’ve likely noticed the news: Compass has filed a federal antitrust lawsuit against Zillow. While it may seem intense, this case has significant implications for homeowners, buyers, real estate professionals, and anyone concerned about market freedom, clarity, and fair competition in the housing industry.

Here’s the real story behind what’s unfolding — and how it does (and doesn’t) affect you as our clients:

Understanding the “Zillow Restriction”

Beginning June 30, 2025 Zillow put in place a new rule: any property promoted publicly (through social media, brokerage websites, or email campaigns) prior to MLS entry will be prevented from displaying on Zillow, Trulia, and their partner platforms.

This means that even when your property eventually gets listed in the MLS, Zillow might still decline to feature it—simply because it was advertised elsewhere initially.

Consider this comparison: imagine if Amazon banned you from selling a product just because you offered it on your personal website first? That’s fundamentally what Zillow is attempting to enforce in real estate.

This rule impacts every real estate professional and brokerage across the country—not exclusively Compass.

What’s more troubling is that Zillow has reportedly collaborated with companies like Redfin and eXp to enforce compliance with this policy, despite it primarily benefiting Zillow’s business interests rather than serving sellers, buyers, or agents.

To put it simply: this initiative isn’t focused on enhancing transparency or safeguarding consumers. It’s designed to safeguard Zillow’s profits.

As Compass CEO Robert Reffkin explains:

“No one company should have the power to ban agents, homeowners, and their listings simply because they don’t follow that company’s business model. That’s not competition—it’s coercion.”

The Rationale Behind Compass’s Legal Action

Compass is challenging this limiting policy because we firmly believe sellers should have greater authority, not less, over their property marketing approach. The company has enlisted Ken Dintzer, the Department of Justice attorney who successfully prosecuted Google’s antitrust case, to challenge Zillow’s market control.

Compass is pushing back through a federal lawsuit because we believe:

  • Zillow is violating federal antitrust laws by using its market dominance to force listings through its platform at the cost of sellers’ visibility, therefore restricting how listings are marketed.
  • Zillow’s exclusionary policies are designed to push every U.S. listing onto its platform for profit.
  • Zillow, Redfin, and eXp are colluding to pressure brokerages and agents into compliance—stifling innovation and limiting homeowner options in an already competitive market.

Read the full article on the case from Reuters here.

So, Will This Affect Your Listing?

Absolutely not, when you work with us.

We maintain membership in the San Francisco MLS, which mandates that listings be entered into the MLS within one business day of any public marketing—precisely the timeframe that Zillow requires. We’ve consistently adhered to this standard. As a result:

  • Your listing will appear on Zillow, Redfin, Trulia, and every major site (at the time you choose to begin public marketing)
  • Your marketing strategy remains intact
  • You’re fully compliant and protected as The Krishnan Team is in compliance

What About Compass Private Exclusives?

Another point of confusion: some think Private Exclusive Listings are banned under this policy. They are not, as long as they remain private.

A Compass Private Exclusive is viewable only to Compass agents and their clients within our internal platform, not the public.

As long as the listing stays within the Compass Private Network and is not publicly marketed, Zillow cannot block it later when it enters the MLS.

That means:

  • No posts on Compass.com (without a private login)
  • No social media
  • No email blasts to outside agents or buyers

All of these requirements are followed by The Krishnan Team.

A Word on Social Media

Here’s a crucial tip: you, the seller, can accidentally trigger Zillow’s policy. If you post “Coming Soon” or “Prepping to Sell!” on Instagram or Facebook, that may count as public marketing and Zillow could penalize the listing. However, it is our current understanding that Zillow will offer warnings, rather than immediately banning your listing at the first mistake.

That’s why we’re here: to make sure all marketing stays compliant while still building buzz in the right way. If you’re ever unsure, ask us first. We’ll guide you.

If you’d like to learn more about Zillow’s new policy, you can read more here: Zillow Policy Explanation

What Happens Now?

For us, it’s business as usual. We remain focused on serving our clients and delivering the best outcomes, using every tool and strategy at our disposal. At the same time, we’re also proud to be part of a company that’s fighting for seller choice on a national scale. Zillow shouldn’t get to decide how you market your home.

If you’re considering buying or selling and want guidance through these changes, let’s talk. You deserve expert advice—and full control over one of life’s biggest decisions.

The Krishnan Team will make sure your listing is:

  • Strategically priced
  • Beautifully presented
  • Fully visible online
  • Compliant with all policies — local and national

We are focused on what matters: your success. Reach out to us if you have any questions we’d be happy to answer them.

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August 14, 2025
Selling a Home
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