A major ruling in the antitrust battle between Zillow and Midwest Real Estate Data (MRED) came down Tuesday night when Judge John Tharp in the Northern District of Illinois denied Zillow’s motion for a preliminary injunction, effectively making way for MRED to cut Zillow off from its feed and lifting a temporary restraining order that has blocked Zillow from implementing its rules as it relates to MRED’s listings.
The court also sent Zillow’s claims against MRED to private arbitration, and claims against Compass—also a defendant in the lawsuit—are also paused while that arbitration process plays out.
In a 54-page decision, Tharp wrote that “Zillow has not made the strong showing necessary to establish antitrust injury. Because Zillow has not made a strong showing as to any of the three required elements of its…claim—an agreement, an unreasonable restraint of trade, and antitrust injury—it has not demonstrated a likelihood of success on that claim.
“Accordingly, Zillow’s motion for a preliminary injunction is denied,” he wrote.
Post-hearing briefs from both sides were filed in July with Tharp’s decision on the preliminary injunction coming as expected in the following weeks.
The lawsuit was filed by Zillow back in May with the portal accusing MRED and Compass of conspiring to undermine its business and cut it off from MRED’s listing feeds. MRED has claimed Zillow violated its rules when the portal banned privately marketed Compass listings.
In a statement sent to RISMedia, a Zillow spokesperson wrote, “Today’s ruling is not the final word. And it hasn’t changed our belief that MRED and Compass coordinated to undermine consumers, or our commitment to proving their misconduct. Every home for sale should be visible to every buyer, with access to homeownership not dependent on knowing the right people. The case continues.”
In a blog post titled, “What today’s ruling means and what comes next” published Tuesday night, Zillow stated that while they are disappointed with the ruling, “we remain committed to pursuing our claims that MRED and Compass conspired to harm competition, and ultimately the majority of agents and consumers who depend on a fair housing market.”
A Compass spokesperson said in a statement that the “decision affirms that choice belongs to the homeowner, and any effort to punish consumers for exercising that choice is anti‑competitive and harmful to consumers. Real estate professionals have a fiduciary duty to serve their clients; Zillow does not.”
MRED, in a statement, celebrated the decision and focused on the principles it claims it will also continue to defend.
“The court’s preliminary injunction ruling in favor of MRED marks an important victory not only for MRED, but also for MLSs, brokers, and the cooperative marketplace nationwide.
“MRED stood its ground to protect a fundamental MLS principle: Brokerages receiving other brokerages’ listing data may use it for their consumer sites, provided they follow the relevant licensing requirements and display all listings approved for distribution.
“This is a victory for fairness, transparency and broker cooperation – principles MRED will continue defending every day.”
This is a developing story. Stay tuned to RISMedia for further developments.
Editor’s note: an earlier version of this story incorrectly stated that Zillow’s claims against Compass will continue.
