Seattle-based real estate tech company Zillow Group Inc. (Nasdaq: ZG) is suing two regional multiple listing services and a listing service consortium, claiming they are violating antitrust law.
Zillow, which filed the lawsuit Friday, alleges Phoenix-area Arizona Regional Multiple Listing Service (ARMLS) and Milwaukee-area Metro MLS, along with the consortium MLS Aligned are trying to stop agents from using Zillow's platform ShowingTime, which allows agents to schedule and manage listings.
MLS Aligned formed in 2021, after which the consortium acquired and rebranded another showing-management platform, Aligned Showings.
According to the complaint, MLS Aligned has tried steering agents toward Aligned Showings by making it the default setting and disparaging ShowingTime. When that didn't work, according to the lawsuit, the Phoenix and Milwaukee MLSs decided to remove ShowingTime from their member portals altogether.
ARMLS removed ShowingTime on Wednesday, and Metro MLS is doing the same in February. MLS Aligned comprises seven regional MLSs, but none of the other five are named as defendants in the lawsuit.
"ShowingTime made numerous attempts to convince these two MLSs to keep the seamless ShowingTime integration active as an additional option for their agent members, as other MLSs in the consortium have done," Errol Samuelson, Zillow's chief industry development officer, wrote in a blog posted to Zillow's website. "The MLSs declined all offered alternatives and resolutions, leaving their agent members with no choice, and giving Aligned Showings an effective monopoly in their regions."
Zillow acquired ShowingTime in October 2021 for $500 million. In addition to scheduling tools, the platform allows agents to schedule photo sessions of listings and get interactive floor plans. Zillow in December 2022 acquired Milwaukee-based VRX Media, a real estate marketing company that provides agents with professional real estate photos, virtual tours, drone photos and drone videos. The acquisition, for an undisclosed amount, was meant to strengthen ShowingTime.
In August of this year, Zillow acquired Aryeo, a platform for real estate photographers, for about $35 million. Zillow also houses Aryeo under ShowingTime.
Zillow was founded in 2004. In addition to its home and rentals search tool, the company offers mortgages and a platform for partner agents called Premier Agent. The company in June announced its decision to shut down Zillow Closing Services, its title and escrow service, in a move that eliminated about 80 roles. In 2021, Zillow decided to shut down Zillow Offers, its home-flipping business, in a move that resulted in laying off 25% of Zillow's headcount.
Zillow generated $496 million in revenue during the third quarter, up 3% year over year. It had a net loss of $28 million, down from $53 million during the same period last year.
