Page 4 - CLT062121

4 ■ JUNE 21, 2021 NEWS

■ From ANTITRUST on PAGE 1 that helps them make decisions when finding their
is that these lawsuits will continue, and the in- next home, and that includes convenient and fast
vestigations will continue. I am not sure what the tools to connect with real estate professionals.”
answer is, as that depends on the success of these In June, Zillow beat back antitrust allegations in
lawsuits. It also depends on the political will to do its home state of Washington.
something about it.” Real estate news site Housingwire.com reported
that federal Judge Thomas Zilly ruled for the company,
‘Homebuyers Lose’ denying a plaintiff’s motion seeking to change how Zil-
At the crux of the lawsuit filed on behalf of Con- low separates agent home listings from other listings.
necticut Coldwell Banker realtor Audrey Demetres But now, the latest lawsuit—a three-count com-
are allegations that Zillow.com, which operates the plaint—alleges unfair competition under the Lanham
nation’s most dominant home-buying platform, Act, violation of the Connecticut Unfair Trade Prac-
steers clients from the initial lister to a “premier tices Act, and antitrust violations of the Sherman Act.
agent” who has paid Zillow for sales leads. It seeks multiple remedies, including monetary
“The defendant’s business model, practices and tac- damages, and preliminary and permanent injunc-
tics are unfair and deceptive toward traditional real tive relief, with the court directing Zillow to correct
estate brokers and listing agents,” according to the the challenged practices.
19-page complaint. “This deception further causes “People will see a lot more suits like this regarding
market confusion and economic harm to consumers. digital platform providers,” said plaintiffs counsel
… This business model and structure [operate] to cast William Westcott of Maya Murphy in Westport,
the premier agents as listing agents, when in actuality who represents Demetres in the Connecticut liti-
they are merely paying a fee to defendant, and letting gation. “America has a monopoly crisis. And that’s
defendant portray them in a way that would be illegal another way of saying and recognizing that we just
and unethical for the premier agents to do directly.” went through one of the most horrific periods in the
University of Connecticut School of Law professor last several decades, and yet Fortune 500 companies
Bethany Berger, who specializes in real estate trans- are doing better then ever.”
actions, said the lawsuit touches on a ”real problem
that harms consumers and buyers.” Politics
“This has been an ongoing issue,” said Berger, who is That’s why observers like Donaher believe litiga-
not involved in the litigation. “Zillow and a few online tion, such as the Connecticut suit against Zillow, is
real estate companies are playing an increasingly large just the tip of the iceberg. He also said the suits have
role in the home-search process. And to the extent that a strong political component.
they displace the brokers that really know the market “It started as a conservative issue, but there is also
and the property, the homebuyers lose. As someone liberal support,” Donaher said. “Conservatives are in-
who teaches and thinks about real estate transactions, creasingly concerned about Big Tech censorship of
what Zillow is allegedly doing sounds troubling.” information on platforms like Twitter and Facebook
that often go against conservatives. There are also con-
‘Convenient and Fast’ cerns from liberals about free speech, and they also
Zillow hasn’t named an attorney to represent it in want to extend the antitrust laws to address other public
the case. policy concerns. There is increasingly common ground
But Viet Shelton, a Zillow spokesperson, issued a among liberals and conservatives on this issue.” ■
statement Tuesday denying any wrongdoing.
“We are aware of the lawsuit. We believe the Robert Storace covers legal trends, lawsuits and
claims are without merit, and intend to vigorously analysis for the Connecticut Law Tribune. Follow
defend ourselves against the lawsuit,” the company him on Twitter @RobertSCTLaw or reach him at
said. “Our site arms consumers with information 203-437-5950.
CONNECTICUT
Law Tribune