Six Regional MLSs File Joint Lawsuit to Block Compass Policy Challenge
Arizona Regional MLS, BridgeMLS, Canopy MLS, Doorify MLS, Hive MLS, and REcolorado filed a joint lawsuit against Compass on Oct. 21 in the Southern District of New York. The six organizations, which represent more than 120,000 real estate professionals, seek a declaratory judgment that their cooperation rules comply with federal and state antitrust laws. The suit also requests a permanent injunction barring Compass from suing any of the six MLSs over their listing submission and pre-marketing policies. The action follows demand letters Compass sent to MLSs in September threatening litigation against any organization that fines agents who violate listing rules.
Compass sent letters demanding that MLSs allow brokers to market listings publicly without submitting them to the cooperative database. The brokerage argues homesellers should control how their property is marketed without agents facing fines. The six MLSs counter that Compass wants to access MLS data for its buyer clients while withholding its own listings, a practice they characterize as free riding that undermines the cooperative model. Greg Skidmore, representing the plaintiffs, said the rules ensure transparency and broad access to timely listing information. Compass pointed to several MLSs across 12 states that currently permit public marketing without MLS submission.
The complaint alleges Compass aims to use its inventory as leverage to drive smaller brokerages out of business, reducing competition and consumer choice. California Regional MLS filed a separate lawsuit against Compass on Oct. 5 after receiving a similar demand letter. Compass countersued CRMLS less than a week later, alleging the MLS enforces competition-blocking rules through fines, suspensions, and expulsions. Rocket Companies, which partnered with Compass earlier this year, co-signed an open letter in March accusing certain MLSs of working against member agents. Other large MLSs including Unlock MLS and OneKey MLS have issued public responses defending their listing policies.
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