Zillow, the leading home-listing platform, is facing off against Real Estate Exchange (REX) at the U.S. District Court in Seattle this month in a lawsuit accusing the online marketplace of driving REX out of business.
REX launched a lawsuit against Zillow in April 2021, alleging that Zillow engaged in anticompetitive practices through website redesigns that confused consumers and made it difficult for them to view REX listings. U.S. District Judge Thomas Zilly dismissed the antitrust claim, but REX’s claims of false advertising and consumer protection remain.
According to REX, changes made to Zillow’s website last year had the effect of depriving REX of the exposure it needed to thrive. According to an expert working with REX, the company was valued at $444 million when it went out of business last year, though Zillow has asked for this figure to be excluded from the trial as an “inappropriate measure” of damages.
Related: Judge Rules Zillow CEO Can Be Deposed In Antitrust Case
The trial will include legal representation from both Zillow and REX. Zillow insists that REX’s accusations are baseless, aiming to prove that the company failed for reasons unrelated to Zillow. An unnamed Zillow spokesperson stated that the dismissal of REX’s antitrust claim was a “big step towards us prevailing in this case given their main argument has been tossed.”
Meanwhile, REX’s legal team intends to demonstrate that REX was a disruptor in the residential real estate industry. According to a lawyer for REX, “If you are not on Zillow, which is the 800-pound gorilla of aggregator websites, you are cut off from a necessary marketing channel.” REX seeks to prove that Zillow’s website redesign marginalized REX and other non-member listings placed on the Multiple Listing Services, an association of realtors who display properties for sale. REX argues that Zillow’s commission rule resulted in higher rates in the U.S. compared to other countries, and Zillow’s lawyers are attempting to bar REX from making this argument at the trial. They are also seeking to bar REX from calling Zillow CEO Rich Barton as a witness.
The upcoming trial promises to be an exciting battle between two of the most influential companies in the residential real estate industry. Both Zillow and REX have much at stake, and the outcome of the trial could have far-reaching implications for the entire industry.
Source: Reuters
Featured News
PBMs Push Back Against FTC, Filing Lawsuit Over Regulatory Actions
Nov 21, 2024 by
CPI
Amazon Faces Legal Setback in Antitrust Lawsuit Over Pricing Practices
Nov 21, 2024 by
CPI
Google Allegedly Encouraged Evidence Destruction to Dodge Antitrust Scrutiny: Report
Nov 20, 2024 by
CPI
Veteran DOJ Prosecutor Joins Farella Braun + Martel as Partner
Nov 20, 2024 by
CPI
DuckDuckGo Urges EU to Expand Google Probes Over Compliance Issues
Nov 20, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Remedies Revisited
Oct 30, 2024 by
CPI
Fixing the Fix: Updating Policy on Merger Remedies
Oct 30, 2024 by
CPI
Methodology Matters: The 2017 FTC Remedies Study
Oct 30, 2024 by
CPI
U.S. v. AT&T: Five Lessons for Vertical Merger Enforcement
Oct 30, 2024 by
CPI
The Search for Antitrust Remedies in Tech Leads Beyond Antitrust
Oct 30, 2024 by
CPI