CoStar is providing a more forceful—and specific—pushback against accusations by Zillow that the company’s 3D home tour subsidiary, Matterport, blocked users from uploading tours on third-party websites, as earlier this week, one of the nation’s largest MLSs sought to remove CoStar-created media, before quickly reversing course.
After Zillow on Monday removed Matterport tours from its website, CoStar denied it had made any recent substantive changes to its terms, even as Zillow accused its rival of moving to “restrict” where Matterport content could appear.
CRMLS, the second-largest MLS in the country, seemingly followed suit, asking members to remove photos, videos and tours created by CoStar—the same day it sued CoStar over a dispute related to an alleged breach of contract with its licensing vendor REcore Solutions LLC.
According to screenshots posted on social media, CRMLS initially told members to remove any media that “originated” on CoStar’s platforms, based on CoStar’s “request.” The MLS threatened a $1,500 fine for agents and brokers that did not remove this media—even from expired or closed listings.
The next day, CRMLS sent another message to members, writing in a short note that CoStar media can still be uploaded to the platform and does not need to be taken down. A spokesperson for CRMLS characterized the update as a “clarification,” with the message saying that CoStar “confirmed” the terms of use did not require removal of media from the platform.
The chaos has left agents and brokers around the country parsing competing statements and accusations, and it is unclear how many listings are affected. CoStar again affirmed that only a certain subset of media—specifically, photos, Matterport Spaces and other content “created for exclusive use on CoStar Group platforms” could not be posted elsewhere.
CoStar also stated in a release Oct. 21 that, “If anyone signs up for a Matterport subscription and creates a Matterport 3D virtual tour (Matterport Space) they can post the Space wherever they like. These Matterport Spaces can be input into all MLSs for distribution on all IDX websites and portals, including Zillow.”
Zillow has noted that its own 3D home-tour services can be posted on other platforms, and has highlighted those options to Matterport customers who had their media removed from its website.
ZIllow did not immediately respond to a request for comment.
It was not immediately clear whether other MLSs also removed CoStar media.
Gene Boxer, CoStar Group’s General Counsel, accused ZIllow of using the issue to distract from other controversies it is involved in, pointing in a statement to the various lawsuits Zillow is currently facing—including one filed by CoStar over alleged copyright infringement.
“Zillow’s misstatements are a pretext to exclude a superior, competing product from its network. Resorting to these anticompetitive tactics against CoStar Group demonstrates that Homes.com and Matterport are succeeding,” Boxer said.
