The Compass–Zillow Feud Escalates With New Federal Lawsuit

• Zillow ban rebuke: Compass has escalated its feud with Zillow over pocket listings by filing a lawsuit for excluding listings that are marketed outside of an MLS.

• Office expense: HSBC is faced with a tough decision to expand its office portfolio while in the midst of a cost-cutting strategy.

• Walmart culture: In order to help attract tech talent and change its corporate image Walmart is investing heavily on the offices in its headquarters in Bentonville, Arkansas.

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Brokerage

The long-simmering dispute between Compass and Zillow just turned litigious. On Monday, residential brokerage giant Compass Inc. filed a federal lawsuit in Manhattan accusing Zillow Group Inc. of “anticompetitive tactics” tied to a controversial policy that would restrict certain home listings from appearing on the real estate platform. At the center of the dispute is Zillow’s plan, set to take effect on June 30, that would block listings publicly marketed for more than 24 hours before being posted to a local MLS.

Compass alleges that Zillow’s new rule is retaliatory, targeting the brokerage’s marketing strategy, which encourages sellers to first circulate listings internally among Compass agents before making them public.

“To protect its market dominance, Zillow has retaliated against competitive threats by enacting an exclusionary policy, its Listing Access Standards (the “Zillow Ban”), and conspiring with at least two of its competitors to work toward a common end: block those, like Compass, who are bringing innovation and competition through pre-marketing strategies to the real estate home search market,” Compass alleges in the complaint.

“Simply stated, the Zillow Ban mandates that if a home seller and her agent market a home off Zillow for more than one day, then Zillow and its allies will ban that listing from their search platforms, making the home invisible for many buyers. The Zillow Ban seeks to ensure that all home listings in this country are steered onto its dominant search platform so Zillow can monetize each home listing and protect its monopoly,” the complaint continues.

The legal clash marks a new phase in an ongoing war over how and when listings should be made public and who has priority access to them. Compass, the largest residential real estate brokerage in the U.S. by transaction volume last year, has increasingly leaned into tactics like extended “coming soon” periods. 

The firm contends these off-MLS marketing windows help agents refine pricing and build buzz, without the scrutiny of third-party platforms tracking listing changes, such as price cuts.

Zillow, whose business relies on offering homebuyers a comprehensive view of the market, views these practices as undermining transparency. In April, it announced the policy change requiring listings to appear on an MLS within 24 hours of any public marketing, citing consumer access and fairness.

Compass’s lawsuit also implicates other players. While it did not name them as defendants, Compass referred to Redfin and eXp Realty as “co-conspirators” in its complaint. Both firms operate their own home-search platforms and have taken stances in favor of stricter listing transparency.

As the lawsuit unfolds, it raises fundamental questions about how competitive advantages are won—or limited—in a housing market increasingly shaped by data gatekeepers. Zillow’s push for transparency and Compass’ preference for internal pre-listing marketing both risk sidelining smaller players. 

If large platforms dominate listing access, independent agents may lose the ability to build local momentum, test pricing, or serve clients competitively. On the other hand, if pocket listings become more prevalent among large firms, unaffiliated buyers and brokers may be excluded from early deal flow and listing portals will lose some of their power.

As residential real estate continues to move further online, control over listing visibility is the new form of gatekeeping, one that could reduce competition and limit consumer choice, regardless of which model prevails in court.

Overheard

Walmart's New Office Headquarters Is Central to Its Rebrand

Walmart has long been seen as a discount retailer but now they want to change that image. As the company expands its online marketplace and pushes into new technology like drone delivery they have been tasked with changing how the public perceives the brand. The members of the public who's opinion might be most important to sway are new employees. Walmart has been working hard to bring tech talent to its headquarters in Bentonville, Arkansas. One of the ways that it is attempting to do that is by revamping its office campus to resemble those used by the tech giants.

When asked about the current revamp of Walmart's 350 acre canvas where almost 20,000 employees work Walmart’s executive vice president of corporate affairs Dan Bartlett said, "Obviously it will play a role in recruiting and retention of talent, particularly tech talent, where they have certain expectations.”

Walmart is showcasing the power of investing in an office. The beautify, amenity rich campus isn't just a way to help them recruit and retain talent, it is also a physical example of their changing corporate identity. Walmart wants to be seen as an innovative company. They have even changed their motto to "Who Knew?" By investing in their workspace, they are driving a culture of innovations that could help the world's largest retailer continue to grow even as the larger retail sector struggles.

HSBC’s Return-to-Office Push Could Undermine $1.5B Cost-Cutting Goal

HSBC’s return-to-office plans may come at a high price, potentially undercutting its ambitious $1.5 billion annual cost-cutting campaign. As the bank considers mandating in-office work three days a week, it faces an estimated $200 million in additional real estate costs annually to secure enough desks across key global hubs.

CEO Georges Elhedery, who is overseeing one of the largest restructurings in HSBC’s history, must soon decide whether to expand office footprints in London, Bangalore, Hyderabad, and Guangzhou. The move is a sharp pivot from HSBC’s earlier strategy to shrink its global real estate portfolio by 40%, which included eliminating private offices and embracing hot-desking.

The return-to-office push could collide with spatial reality. HSBC is staring down a shortfall of nearly 7,700 desks in London, as well as thousands more in India and China. Without prompt action, such as signing leases, retaining satellite offices, or expanding near-term space, the bank risks a logistical bottleneck that could hinder its ability to fulfill its mandate.

The clock is ticking: real estate decisions must be made by September in India and by summer in China. Meanwhile, demand from competitors and constrained supply could further strain HSBC’s attempt to reconcile hybrid work rollbacks with physical space limitations.

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