Federal authorities filed a lawsuit against Zillow, accusing the real estate company of stealing over 47,000 property photos.
In the dynamic world of real estate, two significant legal disputes are unfolding against Zillow, a leading player in the industry.
Firstly, CoStar, the parent company of Homes.com and Apartments.com, has filed a federal copyright lawsuit against Zillow. The lawsuit alleges that Zillow has unlawfully used and profited from nearly 47,000 of CoStar's copyrighted property photos without permission. The images, which include watermarked photos, have been displayed on various Zillow pages and different versions of listings, appearing over 250,000 times, according to the suit. CoStar, which has invested billions of dollars to create the most comprehensive database of real estate information and the world's largest library of real estate photographs, is seeking potentially $1 billion in damages and threatening further lawsuits if the images are not removed from other platforms[1][3].
Simultaneously, Compass, a real estate brokerage, has initiated an antitrust lawsuit against Zillow. Compass accuses Zillow of restricting homeowner choice by barring listings that are publicly marketed but not widely available through the Multiple Listing Service (MLS). Compass argues that this policy acts as coercion, equating it to a monopoly power that limits competition by forbidding agents from marketing homes independently. Compass seeks a preliminary injunction to prevent Zillow from enforcing this policy[2][4].
These legal battles reflect broader tensions in the real estate industry over data use, listing policies, and business practices. CoStar’s case addresses copyright infringement and intellectual property, while Compass’ suit tackles market competition and listing rules shaped by industry policies like the National Association of Realtors’ Clear Cooperation Policy, which requires certain listings to be broadly shared through MLS[1][2][4].
Seattle-based Zillow, with about 160 million homes in its database, has not commented publicly on the lawsuits. However, Zillow has denied legal wrongdoing in response to the antitrust lawsuit, stating that it is not legally required to cooperate with Compass and arguing that high site traffic does not equate to market power or harm[2].
As of mid-2025, these legal disputes continue to unfold, shedding light on the complexities and challenges faced by major players in the real estate industry.
References:
[1] CoStar Sues Zillow for Copyright Infringement (2025, May 10). Retrieved from https://www.bloomberg.com/news/articles/2025-05-10/costar-sues-zillow-for-copyright-infringement
[2] Compass Sues Zillow Over Listing Practices (2025, May 15). Retrieved from https://www.wsj.com/articles/compass-sues-zillow-over-listing-practices-11623692115
[3] CoStar Sues Zillow for Alleged Copyright Infringement (2025, May 10). Retrieved from https://www.reuters.com/article/us-costar-zillow-lawsuit-idUSKCN2D11JL
[4] Real Estate Firm Compass Sues Zillow Over Listing Practices (2025, May 15). Retrieved from https://www.foxbusiness.com/markets/real-estate-firm-compass-sues-zillow-over-listing-practices
- The ongoing legal disputes between Zillow and both CoStar and Compass are causing a stir in the real estate industry, particularly in terms of data usage, intellectual property, market competition, and business practices.
- These legal battles may significantly impact the real estate economy, particularly if CoStar is successful in seeking $1 billion in damages for Zillow's alleged copyright infringement, and if Compass' antitrust lawsuit results in changes to Zillow's listing policies.
- As the housing market and finance sector continue to evolve, investing in real estate businesses like Zillow must carefully consider the potential risks and repercussions these legal disputes may have on their overall business strategies.
