A growing dispute between CoStar Group and Zillow has escalated with Zillow's announcement that it has stopped featuring Matterport 3D virtual tours on its listings. This action stems from CoStar's acquisition of Matterport and its subsequent decision not to extend the existing API agreement with Zillow. Furthermore, Zillow alleges that updated Matterport terms of service now prohibit the display of their 3D tours on rival third-party platforms, directly impacting Zillow's operations.
Zillow asserts that CoStar's updated terms explicitly state that \"CoStar Group Media may not be used or displayed on any third-party platforms, websites, or listing services that compete with CoStar Group\u2019s products and services.\" This, Zillow claims, forced their hand in removing all Matterport content. A Zillow spokesperson emphasized that CoStar's alleged attempts to monopolize data and restrict how real estate professionals utilize content they've paid for are detrimental to the entire industry. Zillow, conversely, promotes a variety of 3D media solutions, including its proprietary Zillow 3D Home tool, which offers broader usage flexibility.
CoStar, however, has refuted Zillow's claims, accusing them of intentionally misrepresenting the licensing terms. A CoStar spokesperson clarified that while media created specifically for CoStar's platforms is proprietary, Matterport users retain the ability to share their virtual spaces anywhere, including on Zillow. CoStar also noted that Zillow had not actively used the Matterport API for several years, suggesting that the non-renewal has no bearing on Matterport customers' sharing capabilities. CoStar contends that Zillow's removal of Matterport tours is a unilateral decision, designed to create confusion and deflect from ongoing legal battles where CoStar alleges Zillow infringed on its copyrighted photographs. Zillow, in an email to its Street Easy customers, acknowledged the frustration caused by the removal and reiterated its commitment to supporting agents' marketing strategies through alternative virtual tour options.
This ongoing conflict between major real estate technology platforms underscores the evolving landscape of digital real estate, where control over data and content distribution is paramount. The dispute highlights the critical need for transparency and fair competition to ensure that real estate professionals and consumers alike benefit from technological advancements rather than being constrained by corporate rivalries. Ultimately, fostering an environment of open access and interoperability will empower innovation and lead to a more efficient and user-friendly experience for everyone involved in the housing market.
