The Consumer Federation of America and other watchdog groups have called on the Federal Trade Commission and the Department of Justice to investigate Compass's deal with the Midwest Real Estate Data (MRED) listing service. The letter arrives as Zillow, Compass, and MRED commenced a two-day preliminary injunction hearing in Illinois over the arrangement.
Consumer advocates argue the pact may reduce competition in real estate data access, potentially harming consumers. They contend it could give Compass an unfair advantage in controlling private listing data, which rivals like Zillow rely on to power their platforms.
The hearing marks a critical juncture in an ongoing legal battle. Zillow sought the injunction to block MRED from providing Compass with exclusive access to certain listing data, claiming the deal violates antitrust principles and could undermine market transparency.
Compass and MRED have defended the agreement as a legitimate business arrangement. They maintain it enhances service for sellers who want more control over their listings, without violating fair housing or competition laws.
Economists warn that the outcome could reshape how listing data is shared in the industry. If the deal proceeds, it may set a precedent for other real estate firms to negotiate exclusive data-sharing terms, potentially fragmenting the multiple listing service model.