Six MLSs file federal lawsuit against Compass over private listings

Six multiple listing services (MLSs)—Arizona Regional MLS, Bridge MLS, Canopy MLS, REcolorado, Hive MLS, and Doorify MLS—have filed a federal lawsuit against Compass International Holdings in the Southern District of New York. The preemptive legal action seeks to have the court declare their cooperation rules lawful and prevent Compass from pursuing antitrust litigation against them.

The dispute centers on Compass’s practice of maintaining a network of private listings that are not available for public view. The plaintiffs argue that Compass has sent demand letters threatening antitrust litigation unless the MLSs stop enforcing rules that require publicly marketed listings to be submitted to the service. The MLSs contend that Compass aims to benefit from listings shared by competitors while selectively withholding its own inventory, which they claim undermines market transparency and provides the brokerage with an unfair competitive advantage.

This filing follows a similar lawsuit filed earlier this month by the California Regional MLS (CRMLS). While Compass maintains that its practices provide sellers with more choice to ‘test the market,’ critics and MLS leaders, including OneKey MLS CEO Richard Haggerty, argue that withholding inventory restricts buyer access and limits consumer options.