Zillow files motion to dismiss CoStar's claims

Zillow has filed a motion to dismiss the claims brought by CoStar Group, because we believe the allegations are legally flawed and fail to state a viable claim.

Zillow operates a growing and dynamic rentals platform that helps landlords, brokers and agents connect with prospective tenants, including by allowing them to upload photographs of their listings. CoStar filed this case because of Zillow's success in rentals - driven by lawful competition and a superior product.

Our motion outlines how this lawsuit is simply part of a broader pattern: CoStar is suing a competitor instead of competing on product quality and customer service. It remains clear to Zillow this is a media stunt and effort to stifle competition and innovation.

Although CoStar chose to bypass the standard Digital Millennium Copyright Act (DMCA) takedown process - a U.S. law that allows copyright owners to inform online service providers about infringing material so it can be taken down - Zillow removed the images identified in the complaint and has been addressing any follow-up concerns raised by CoStar. We continue to follow the DMCA and our processes for reviewing and responding to copyright claims.

"CoStar's allegations in this lawsuit focus on user-submitted content and marketplace activity. Their choice to sue Zillow shows that the case is not about protecting copyright; it is about using litigation to stifle competition and innovation rather than fairly competing on the merits of their product. We remain confident in the integrity of our rental marketplace, our advertising practices, and the tools we provide and will continue to defend our position vigorously while staying focused on serving our renters and partners."

Zillow and its rentals organization will continue to focus on creating a transparent, competitive platform that connects renters with a broad set of housing options and gives partners strong reach and return on investment (ROI).

Q: What is a motion to dismiss?

A: It's a standard legal step taken at the beginning of a case. It asks the court to review the complaint itself and determine whether, even if the allegations are assumed to be true, they amount to a valid legal claim. In this instance, we contend that they do not.

Q: Does this mean the case is over?

A: Not yet. The court must decide whether to grant or deny the motion. If granted, some or all of the claims could be dismissed. If denied, the case would continue to the next stage.

Q: Does this change anything about how Zillow operates its rental marketplace?

A: No. There are no changes to Zillow's rental products, advertising offerings, or partner relationships as a result of today's filing.

Q: Should Zillow rental partners expect disruption to their listings or performance campaigns?

A: No. This motion to dismiss does not impact listing visibility, billing, contracts, or day-to-day operations.

Q: Does this filing signal a shift in Zillow's strategy?

A: No. Zillow remains committed to helping rental partners succeed and to operating a competitive, transparent marketplace.