The first day of the Compass vs. Zillow preliminary injunction hearing exposed internal communications and strategy documents that offered a rare look into how Zillow views its power over the real estate industry, listing distribution and agent behavior. Here are the most significant revelations presented in court. The real estate landscape is shifting fast. If you want to understand how these changes affect sellers, buyers or private listings, I can walk you through the details and what it means for you.

Zillow’s Internal Strategy: Dominate Listings and Isolate Competitors

From a document labeled “Privileged and Confidential,” Zillow’s legal team wrote:

• “Goal is 90% listings on Zillow, and isolate Compass and any other bad actors that emerge.”
  
  

• “If initial tactics look to be insufficient we will escalate carrots to friends and sticks to foes.” 

Carrots = paying for content; Sticks = listings ban and product bans at the brokerage level.

This shows an explicit strategy to pressure brokerages and control listing flow.

Zillow and Redfin Coordination

Testimony showed Zillow and Redfin’s CEOs spoke at least six times between March and June 2025, adopting nearly identical listing standards shortly after each discussion.

Redfin’s Chief Growth Officer said:

• “A listing could disappear from Zillow and Redfin without notice… enough to give listing agents pause.”

Why Zillow Is Fighting Hard 

Zillow’s Chief Industry Development Officer explained:

• “If the site’s missing inventory, buyers lose trust and go elsewhere. Smaller audience means less ability to sell advertising.”
  
  

This is the core issue: Zillow’s business model depends on near total visibility into inventory. They do not like pocket listings, coming soon listings or private exclusive listings.

NAR Cooperation Policy

Zillow Business Model 2025

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