MLSs ask court to dismiss Zillow, ShowingTime lawsuit
ARMLS and Metro MLS respond to “monopoly” claims, contending that its showing management platform leads to increased competition, not less.
The defendants in a lawsuit brought by Zillow Group and ShowingTime have filed a motion to dismiss the case, saying that the home search and technology company is merely facing "robust competition."
Case background: Zillow filed the lawsuit Dec. 22 in the U.S. District Court for Arizona, alleging that plans by at least two multiple listing services to remove ShowingTime integration will create a monopoly in those MLS regions.
The defendants in the case are the Arizona Regional Multiple Listing Services (ARMLS), Wisconsin's Metro Multiple Listing Service (Metro MLS) and MLS Aligned, an MLS network which developed its own showing management platform, Aligned Showings.
Following the removal of ShowingTime, which Zillow called "anticompetitive and exclusionary," the only integrated showing management platform available to subscribers of the named MLSs would be Aligned Showings.
The other member MLSs in the MLS Aligned network — RMLS in Oregon, Northern Nevada Regional MLS, UtahRealEstate.com, MLSListings in Northern California and BeachesMLS in Florida — were not listed as defendants in Zillow's complaint.
Argument to dismiss: In asking the court for a dismissal, attorneys for the two MLSs said the court should look at this case with "great skepticism," arguing that adding a new management platform, Aligned Showings, increases competition in the marketplace as a whole.
The defendants note in the filing that ShowingTime is the dominant showing management service nationally, and the only integration for some MLS portals, calling Zillow's anticompetitive claims "ironic."
"The notion that ShowingTime's loss of two integration contracts in a national market of hundreds of MLSs should give rise to antitrust liability is unserious," the filing states.
The defendants also addressed the claim that they are boycotting ShowingTime, saying that they are not competitors.
"Rather, each [MLS] is a buyer of those services — as made clear by plaintiffs' case being premised on their decisions to terminate ShowingTime and instead individually contract with MLS Aligned for Aligned Showings," the filing states. "Nor do they compete as MLSs since they operate nearly 2,000 miles apart and service entirely distinct regions."
In an email, ARMLS CEO Matt Consalvo said the decision to shift to Aligned Showings was the right one for its marketplace and brokers/agents.
"The accusations put forth are unfounded, incorrect, and our counsel has documented that in the Motion to Dismiss," Consalvo said. "We look forward to the day when this matter is behind us so we can once again focus on addressing interoperability in a way that gives Brokers/Agents choice and data protections."
What Zillow has said: In the original complaint, Zillow alleged that "rather than competing on the merits," MLS Aligned conspired to remove the ShowingTime integration in favor of its proprietary showing management platform. The complaint noted that Zillow offered ShowingTime access for free to those markets.
Zillow Group "made numerous attempts to convince these two MLSs to keep the seamless ShowingTime integration active as an additional option for their agent members, as other MLSs in the consortium have done," said Chief Industry Development Officer Errol Samuelson in a blog post. However, ARMLS and Metro MLS "declined all offered alternatives and resolutions, leaving their agent members with no choice."