New York Antitrust Probe Threatens Nation’s Largest Brokerage Merger
New York Attorney General Letitia James opened an antitrust investigation into Compass following its $1.6 billion acquisition of Anywhere Real Estate, which closed earlier this year. Compass grew from roughly 40,000 agents to more than 200,000 when it absorbed Anywhere’s brands, including Century 21, Sotheby’s, and Coldwell Banker. The firm was already the country’s largest brokerage by transaction volume before the deal. Shares fell 12% to $7.61 Wednesday after news of the probe.
The investigation centers on whether the merger violated antitrust law, particularly in luxury markets like New York where both companies held significant positions. A November analysis from policy firm Capstone projected the combined entity would control more than 30% of the New York market. If the attorney general finds violations, Compass could face fines or be forced to divest parts of the business. Some industry analysts had anticipated regulatory scrutiny would require office sales before approval.
The merger cleared federal review faster than expected after senior Justice Department officials declined to launch an extended examination in January. Compass had retained Trump-aligned attorney Mike Davis to advocate for the deal. The company now uses its expanded scale to promote a controversial practice of sharing seller listings internally among Compass-affiliated brokerages before posting them publicly. Critics, including Zillow, argue the approach limits buyer reach and undermines sellers, while Compass maintains it offers clients flexibility to test pricing and prepare listings before full market exposure.
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