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MRED warns Zillow lawsuit could revive MLS antitrust concerns
MRED says the DOJ-linked antitrust settlement that shaped MLS cooperation expired in November 2018, but it fears the current fight could undermine how MLSs and IDX feeds treat competing business models consistently.
Midwest Real Estate Data, also known as MRED, warned that its legal dispute with Zillow over listing display rules could threaten core principles that govern multiple listing service cooperation and broker access, according to HousingWire. MRED said it connected the current case to the Department of Justice’s 2008 settlement with the National Association of Realtors, which challenged MLS rules viewed as disadvantaging Internet-based brokerages. It said that settlement reinforced the idea that MLSs and brokers must treat competing business models consistently, including that brokerages cannot exclude listings from the feeds they display based on competitive considerations.
In practice, MRED said the settlement meant brokerages cannot block listings belonging to competing brokerages from being shown through MLS-powered feeds on their websites. MRED also noted the terms of that settlement expired in November 2018.
MRED said Zillow sued in mid-May, arguing MRED’s stance conflicts with its Internet Data Exchange, or IDX, data licensing agreement, because filters could lead to suppression of some listings. At the center is whether MRED can suspend IDX and VOW listing data feeds if Zillow filters or suppresses certain listings, and MRED argued that allowing selective filtering while still using an MLS feed could let other brokerages curate competitors’ listings to match their own marketing strategies.
MRED described itself as a market referee for enforcing fair broker cooperation and said the dispute could erode the comprehensive marketplace consumers and agents expect from MLS-powered search experiences. It questioned what would stop every brokerage from excluding listings if Zillow is allowed to do so while receiving an MLS feed.