Compass Files Lawsuit Against NWMLS for Alleged Anticompetitive Behavior
Compass, a real estate company, has filed a lawsuit against the Northwest Multiple Listing Service (NWMLS) for allegedly engaging in anticompetitive practices. According to Compass, NWMLS is a monopolist that restricts homeowners’ ability to pre-market their homes before making them public. In a press release, Compass stated that in every other state, homeowners have the freedom to choose to pre-market their homes through platforms like Compass Private Exclusive or Compass Coming Soon.
The complaint filed by Compass accuses NWMLS of being a combination of competing real estate brokers who control nearly 100% of residential real estate transactions in the Seattle area. Compass claims that NWMLS has enforced rules to limit competition and force homeowners to use its platform for buying or selling homes.
Compass alleges that NWMLS, threatened by its innovative offerings, conspired with competing real estate brokerages to eliminate rules that allowed Compass to offer office exclusive listings. Despite Compass’s efforts to engage in NWMLS’s rule change governance process, NWMLS refused to modify its rules to accommodate Compass’s requests.
As a response to NWMLS’s refusal, Compass decided to offer its three-phase marketing strategy only to sellers who sign a non-exclusive listing agreement. However, NWMLS retaliated by changing its rules to require properties listed with a non-exclusive agreement to be submitted to NWMLS and comply with all NWMLS rules.
Compass further claims that NWMLS shut off its IDX feed without warning or due process, harming Compass clients, brokers, and homeowners in the process. The alleged anticompetitive behavior by NWMLS, according to Compass, restricts consumers’ freedom to sell and market their properties as they choose, stifles competition, and entrenches NWMLS’s monopoly.
Compass is seeking damages and a permanent injunction against NWMLS under the Sherman Antitrust Act. The dispute between Compass and NWMLS escalated earlier this year, with public exchanges between Compass CEO Robert Reffkin and NWMLS CEO Justin Haag. The conflict has led to the emergence of a website called Washington Homeowner Rights, backed by Compass, seeking potential class action plaintiffs against NWMLS.
NWMLS has not provided a comment on the lawsuit filed by Compass.