MRED Blog

The real estate industry has been here before.

In 2008, the U.S. Department of Justice reached a landmark settlement with the National Association of REALTORS® after challenging rules it believed disadvantaged Internet-based brokerage models. A critical principle emerged: brokers should be treated consistently regardless of business model, and MLS cooperation should not favor one competitor over another.

MRED believes the position Zillow is taking in its lawsuit threatens that principle. At issue is whether Zillow should be able to decide which MLS listings it will display using criteria that conflict with MRED’s data licensing agreement. If Zillow can receive an MLS feed and arbitrarily exclude certain listings, what prevents every brokerage from doing the same?

One broker could exclude a competitor’s listings. Another could reject listings based on marketing strategy. Soon, the comprehensive, cooperative marketplace consumers rely on will fracture.

This case is about much more than Zillow. MRED believes its job as market “referee” is to  defend fair broker cooperation and the integrity of the IDX Data Licensing Agreement signed by cooperating brokers.

If that foundation unravels, the industry could invite the same type of DOJ scrutiny the 2008 settlement sought to resolve.

History may be trying to repeat itself.

We are hopeful the courts will recognize what’s at risk by arbitrarily allowing one brokerage to dictate listing display terms serving the needs of their own website to the detriment of homesellers who have chosen their own marketing path.