{"id":4643,"date":"2023-08-17T13:54:00","date_gmt":"2023-08-17T13:54:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/17\/judge-dismisses-antitrust-claims-against-nar-zillow\/"},"modified":"2025-03-13T02:52:42","modified_gmt":"2025-03-13T02:52:42","slug":"judge-dismisses-antitrust-claims-against-nar-zillow","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/17\/judge-dismisses-antitrust-claims-against-nar-zillow\/","title":{"rendered":"Judge dismisses antitrust claims against NAR, Zillow"},"content":{"rendered":"\n

Though the National Association of Realtors<\/a><\/strong> is not out of the legal woods<\/a> yet, the trade group does have reason to celebrate. A federal court judge on Wednesday dismissed all antitrust allegations made by REX Real Estate<\/strong> against NAR and Zillow<\/a><\/strong>.<\/p>\n\n\n\n

The remaining claims in the case are all against Zillow, meaning that NAR is no longer a defendant in the case and will not have to participate if it heads to trial next month as scheduled.<\/p>\n\n\n\n

In his order dismissing the claims, Judge Thomas Zilly of the U.S. District Court for the Western District of Washington wrote that the \u201cCourt concludes that REX has failed to present evidence of the conspiracy alleged in its Amended Complaint, namely, a purported agreement between NAR, Zillow, and non-party MLSs to segregate, conceal, and demote non-MLS listings on Zillow\u2019s websites and mobile platforms.\u201d<\/p>\n\n\n\n

The antitrust claims against NAR and Zillow were dismissed with prejudice.<\/p>\n\n\n\n

In the order, Zilly noted that NAR\u2019s No-Commingling Rule was optional and that about 29% of Realtor-affiliated MLSs had not adopted the rule, without any repercussions from NAR. On its own, the rule \u201cdoes not constitute direct or circumstantial evidence of an anticompetitive agreement between NAR and Zillow,\u201d Zilly wrote.<\/p>\n\n\n\n

\u201cThe undisputed evidence in this action shows that neither NAR nor its affiliated MLSs were involved in Zillow\u2019s decision to implement the challenged two-tab display that allegedly drove REX out of business,\u201d he added.<\/p>\n\n\n\n

Zilly also pointed out the unlike other brokerage, Zillow continued to display REX\u2019s listings.<\/p>\n\n\n\n

\u201cThe evidence demonstrates that instead of precluding REX\u2019s listings entirely, like websites such as Redfin did \u2026 Zillow expended significant time and resources to ensure that REX\u2019s and other non-MLS listings would remain on its platforms, albeit under a separate tab,\u201d the order reads.<\/p>\n\n\n\n

Originally filed by REX in March 2021<\/a>, the lawsuit alleges that changes made to Zillow\u2019s website \u201cunfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.\u201d<\/p>\n\n\n\n

Two months prior, in January 2021<\/a>, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service<\/a> (MLS) practices.<\/p>\n\n\n\n

In January 2022, NAR filed a countersuit<\/a> claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed<\/a> in late April 2022.<\/p>\n\n\n\n

In mid-May 2022, REX ceased its brokerage operations<\/a>. <\/p>\n\n\n\n

A little over a year later, in mid-June 2023, the three parties involved in the suit, all filed motions for summary judgment<\/a> on at least some issues, if not the entire lawsuit.<\/p>\n\n\n\n

Earlier this month, Zilly ruled on other claims in the lawsuit<\/a>, allowing three of REX\u2019s claims against Zillow to head to trial: a false advertising claim under the Lanham Act<\/a>, a claim for unfair or deceptive trade practices under Washington\u2019s Consumer Protection Act (CPA) and a claim alleging defamation.<\/p>\n\n\n\n

Although Zillow\u2019s legal battle against REX is not over, the company was pleased with Wednesday\u2019s ruling.<\/p>\n\n\n\n

\u201cToday\u2019s ruling is a significant victory for Zillow in this case. The court agreed REX\u2019s antitrust claim was without merit and lacked any evidence to back it up,\u201d Will Lemke, Zillow\u2019s manager of corporate communications, wrote in an email. \u201cThis ruling affirms Zillow\u2019s business decisions were squarely focused on improving the data on our website for consumers. With REX\u2019s central argument tossed from this case, we believe the public now sees this case for what it is: REX seized upon another company\u2019s website design change to hide its own business failings.\u201d<\/p>\n\n\n\n

The lawsuit is scheduled to head to trial on September 18. NAR and attorney for REX did not return a request for comment by the time of publication.<\/p>\n","protected":false},"excerpt":{"rendered":"

A federal court judge on Wednesday dismissed all antitrust allegations made by REX Real Estate against NAR and Zillow.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-4643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nJudge dismisses antitrust claims against NAR, Zillow - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"U.S. District Court Judge in Washington dismisses REX Real Estate's antitrust claims against NAR and Zillow on Wednesday.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/17\/judge-dismisses-antitrust-claims-against-nar-zillow\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Judge dismisses antitrust claims against NAR, Zillow\" \/>\n<meta property=\"og:description\" content=\"U.S. District Court Judge in Washington dismisses REX Real Estate's antitrust claims against NAR and Zillow on Wednesday.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/17\/judge-dismisses-antitrust-claims-against-nar-zillow\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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