Zillow and two MLSs appear to have reached a settlement agreement in an antitrust lawsuit over its ShowingTime software, in which the portal giant alleged a the MLSs conspired to use “monopoly power” to undermine its product in favor of a new service they owned.
Terms of the lawsuit were not immediately released, and Zillow and the MLSs did not immediately respond to a request for comment.
According to a court filing, Zillow, Arizona Regional MLS and Wisconsin-based Metro MLS have “signed binding term sheets” which will require them to “expeditiously” enter into a formal settlement.
“The parties do not expect the remaining issues to be an obstacle to completing and executing that detailed agreement,” lawyers for Zillow wrote.
The lawsuit was based on what was allegedly a year-long campaign by the two MLSs to deintegrate ShowingTime from their platforms while attempting to court members to a competing showing service they were developing. ShowingTime was eventually completely removed from their platforms on December 27 of last year.
Zillow claimed in the lawsuit they offered to provide a version of ShowingTime for free, an offer that the MLSs declined. Not having ShowingTime integrated into the MLS platform made the service “functionally unworkable for most agents,” Zillow said.
In an open letter to the industry published alongside the lawsuit, Zillow Chief Industry Development Officer Errol Samuelson argued that agents should be given choices, saying that the lawsuit was about “pro-competitive, pro-consumer solutions that preserve agent choice.”
The two MLSs had argued their actions were above-board, and part of a normal and healthy competitive process for real estate services.
According to the court fling, the settlement is expected to be finalized in the next month.
