In a shocking upset, a Vermont real estate website is suing Zillow for violating antitrust law. The website, called Picket Fence, alleges that Zillow’s operation in Vermont led to millions in lost revenue, both past and projected.
According to court documents supplied by the state of Vermont, Picket Fence—a for-sale-by-owner business that originated and is located in Vermont—was one of the first significant FSBO businesses in the state. Picket Fence purportedly endeavored to use their services in order to connect private sellers with clients, thus negating the need for an agent or traditional real estate service.
Zillow, by contrast, is a “Foreign Profit Corporation” in Vermont. Since Zillow is located predominantly in Seattle, Washington, their presence in the state of Vermont falls under a different classification than that of Picket Fence.
The court document alleges that Zillow, by providing aggressive competition in a state other than that of its origin, deprived Picket Fence of due revenue. It also alleges that Zillow violated “state and federal consumer and antitrust laws” in addition to a handful of Vermont laws. The document refers to “unfair and deceptive acts” on behalf of Zillow, insinuating that Zillow’s operation in Vermont was damaging to FSBO services like Picket Fence.
While much of Zillow’s purported damage to Picket Fence is projected based on profit estimations from 2017, the fact remains that Zillow used the tactics they have used across the country to monopolize real estate business in Vermont. Picket Fence estimates that this will result in a net loss of over $142 million by 2030, so their case prioritizes monetary recompense.
On a separate note in the document, Picket Fence shows that Zillow’s operation and interference in Vermont prevented local FSBO and other real estate endeavors from taking hold despite the best efforts of Picket Fence. The complaint addresses this issue as another nail in the antitrust violation coffin.
Picket Fence continues to suggest that Zillow’s actions were and are illegal, damaging, and in violation of significant antitrust law. This isn’t surprising given Zillow’s long history of shady activity from patent-grabbing to lengthy court cases designed to crush competitors; it is these exact behaviors that Picket Fence is hoping to address in their complaint.
Zillow, for their part, will have to answer for a lot over the course of the last 12 months. This Vermont case is sure to be one of the first of many attempts to bring the real estate giant to its wobbly, monopoly-seeking knees—and, with any luck, it will be the first successful one.