Compass asks the court to dismiss the counterclaims of the ‘monopolistic’ NWMLS

The legal battle between Compass International Holdings and Northwest MLS continued this week, with the megabrokerage telling a court that the “monopolistic” multiple listing service limited consumer choice by enforcing rules that block premarketed listings.

Compass and NWMLS are embroiled in a lawsuit that could set a legal precedent over whether multiple listing services could soon block listings, one of the hottest trends and fiercest ongoing debates facing the industry.

Compass sued NWMLS last April in the US District Court for the Western District of Washington after the MLS briefly shut down the feed of listings in its coverage area due to concerns about the way Compass was marketing listings.

NWMLS counterclaims filed earlier this month he said Compass was using an “Orwellian-named” pre-marketing strategy that included Compass Private Exclusives and Compass Coming Soons.

Now, in an April 23 filing, Compass continued to defend its pre-marketing strategy as pro-consumer and criticize the NWMLS rules as an anti-competitive conspiracy by Seattle-area brokers to block Compass.

“Through its counterclaims, NWMLS seeks to impose tort liability arising from Compass’ efforts to help its brokers meet their fiduciary duties and provide homeowners with a variety of options to market their homes,” Compass wrote in the filing. “But NWMLS’s own anti-competitive ‘success’ in blocking these practices prevented any damage from being done.”

“Thus, the counterclaims serve only as a revealed threat to Compass and any other Seattle brokers who might consider resisting NWMLS’s mandates or breaking with the broker conspiracy that orchestrated it,” the filing continued.

NWMLS is one of the few multi-listing services that bans all upcoming listings. Utah Real Estate is another example, although the MLS is preparing to change its rules to allow such pre-marketed listings, which is allowed by most other MLSs.

Redfin, headquartered in Seattle, recently called on NWMLS to change its rules and join the other MLSs that serve the vast majority of agents and soon allow listings.

Last month, Judge Jamal N. Whitehead, who is overseeing the case, denied a request by NWMLS to dismiss Compass’ lawsuit.

In response to the filing, NWMLS called Compass’ marketing strategy a “gimmick” and an “exclusionary practice that hides material information and offers from the buyers who need them most.”

“Compass’s recent attempt to frame market transparency as a ‘monopoly’ distracts from the real problem: creating shadow inventories that benefit a single brokerage at the expense of the general public,” the statement said.

“We believe a fair market is an open market. We will continue to defend pro-competitive rules that benefit all agents and consumers and protect the public’s right to a transparent, competitive and fair real estate market.”

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