Compass files an antitrust suit against NWMLS over its CCP

Compass has taken legal action against Northwest MLS (NWMLS) by filing a federal antitrust lawsuit in U.S. District Court in Seattle. The lawsuit challenges NWMLS’s Clear Cooperation Policy (CCP), which Compass claims is the most restrictive homeowner marketing rule in the country. Unlike the National Association of Realtors’ (NAR) CCP, which allows for office exclusives, NWMLS does not permit them.

Compass alleges that NWMLS acts as a monopolist and restricts competition among real estate brokers in the Seattle area. The complaint states that NWMLS’s rules force anyone looking to buy or sell a home with a real estate professional to use its platform, limiting homeowners’ choices and competition. Compass accuses NWMLS of engaging in anticompetitive conduct that harms homeowners, Compass, and its brokers.

The dispute between Compass and NWMLS intensified after Compass requested a rule change to allow for office exclusives, which NWMLS refused. In response, Compass offered its marketing strategy only to sellers who signed a non-exclusive listing agreement not accepted by NWMLS. NWMLS then changed its rules, impacting Compass and its clients. Compass claims NWMLS’ actions maintain its market power and hinder competition.

Compass is seeking damages and a permanent injunction against NWMLS under the Sherman Antitrust Act. The conflict between the two parties began with public statements by Compass CEO Robert Reffkin and NWMLS CEO Justin Haag, leading to the legal confrontation. Additionally, a website supported by Compass has emerged, seeking NWMLS home sellers affected by its policies.

NWMLS has not provided a comment on the matter.