Northwest MLS Asks Court to Dismiss Compass’ Lawsuit

Published on: July 1, 2025

Yesterday, Northwest MLS filed papers asking the court to dismiss the complaint brought by Compass alleging that Northwest MLS’s rules are anti-competitive.

Northwest MLS is a private, not-for-profit, member-owned multiple listing service providing a variety of services for its members in Washington and parts of Oregon.  Compass is the largest brokerage firm in the United States and joined Northwest MLS as a member-owner in March 2018. 

Northwest MLS Rules

For more than 40 years, Northwest MLS member-brokerage firms (including Compass) have agreed to cooperate and share all listings of all properties with the entire brokerage community and the public.  Northwest MLS believes that an open, fair, transparent, and comprehensive marketplace benefits all market participants, including sellers, buyers, brokers, and appraisers.

Northwest MLS’ rules and policies promote fair competition and facilitate listing choices for sellers, without restricting the visibility of available homes to a limited, “exclusive” group of buyers and brokers.

Compass’ Exclusionary Program

Compass’ exclusionary program hides property listings from other brokers and consumers for the benefit of Compass and its brokers – under the guise of “seller choice”. 

Compass voluntarily agreed to follow Northwest MLS’s Rules.  When Compass decided on a new business strategy, it demanded that Northwest MLS alter its longstanding rules to conform to Compass’ new strategy.  Compass dislikes that it was unable to persuade its co-members to amend the rules to allow Compass to cherry-pick the listings that it shares.

In March and April of this year, Compass began to withhold listings from submission to Northwest MLS, in violation of the rules, to instead market those listings internally, solely within Compass, and to steer those listings to a Compass-represented buyer.  As a result of the rule violations, Northwest MLS temporarily suspended the license to Compass for its IDX data feed that enabled Compass to publish other members’ listings on its public websites.

Compass Cannot Have It Both Ways

Despite its chosen strategy of hiding listings from other brokers and consumers, Compass demands—indeed, claims legal entitlement to—unfettered access to the listings of all other brokers participating in Northwest MLS.  Access which Compass concedes is essential for any broker to “successfully compete.” 

Compass, however, cannot have it both ways.  By demanding access to others’ listings while claiming a right to deprive other member brokerages of its own listings, Compass’ complaint confirms the pro-competitive nature of Northwest MLS’s rules. 

Northwest MLS has no legal obligation to promote Compass’ exclusionary, free-rider strategy.  Northwest MLS’ rules were designed to prohibit conduct like Compass’, which inhibits competition in the real estate market, harms consumers, and contravenes Northwest MLS’s founding purpose. 

Accordingly, Northwest MLS’s motion asks the court to dismiss Compass’ unfounded claims.