CoStar Group Refutes Zillow’s False Claims and Reaffirms Commitment to Open Access for Matterport Spaces
CoStar Group, a global leader in online real estate marketplaces, property information, analytics, and advanced 3D digital twin technology, has firmly set the record straight regarding recent misleading statements made by Zillow Group. In response to Zillow’s allegations, CoStar Group has reiterated its full and ongoing support for Matterport Spaces—its proprietary 3D virtual tour technology—across all public and private digital platforms.
Zillow has recently accused CoStar Group of “restricting the use of Matterport 3D virtual tours outside of CoStar-owned sites.” CoStar Group has categorically denied these allegations, describing them as both false and deliberately misleading. The company clarified that Matterport Spaces purchased directly through Matterport remain fully open and shareable across any website or listing platform, without exception.
Unrestricted Use of Matterport 3D Virtual Tours
CoStar emphasized that any user who subscribes to Matterport’s services and creates their own 3D virtual tours—known as Matterport Spaces—maintains complete ownership and control over where those Spaces are displayed. Whether the user is a real estate agent, developer, or construction manager, they retain the right to embed or publish their Matterport Spaces across any real estate portal, multiple listing service (MLS), or third-party website.
This includes the ability to upload Matterport tours to all MLS systems, ensuring widespread visibility through Internet Data Exchange (IDX) feeds and property distribution networks. The company noted that Zillow’s claim to the contrary is baseless, and that several MLS organizations have already corrected the record. One of the nation’s largest MLSs—California Regional MLS (CRMLS)—has publicly confirmed that its members may continue to use Matterport Spaces freely in their listings across all platforms, including Zillow.
According to CoStar, the misunderstanding appears to stem from Zillow’s attempt to conflate Matterport Spaces created independently by agents or subscribers with 3D tours produced by CoStar’s in-house photographers for exclusive use on CoStar Group’s owned-and-operated sites such as Homes.com and Apartments.com.
In a clarifying statement, CoStar explained that only those virtual tours commissioned and produced by CoStar Group’s professional photography teams for its own media brands are proprietary content. These materials are protected under CoStar’s copyright and intended solely for use on CoStar’s platforms, as they are part of a paid advertising or membership service. All other Matterport Spaces remain open and unrestricted.
A Technology Widely Used Across Industries
Matterport’s 3D virtual tour technology—branded as “Matterport Spaces”—has become a critical tool in numerous industries beyond residential and commercial real estate. Thousands of organizations globally rely on the immersive 3D environment to improve visualization, accuracy, and operational efficiency in sectors such as architectural design, construction management, insurance, manufacturing, and industrial operations.
For architects and engineers, Matterport Spaces serve as digital blueprints that provide accurate spatial data and allow remote collaboration. In construction, they streamline progress tracking, project documentation, and stakeholder communication. Insurers and adjusters use them to assess properties post-damage with greater precision, while facility managers and manufacturers utilize the digital twins to optimize layouts and maintenance planning.
CoStar Group emphasized that this broad ecosystem of Matterport users underscores the company’s commitment to accessibility and interoperability—the exact opposite of the “restrictive” practices Zillow has accused them of. By keeping Matterport Spaces open for cross-platform use, CoStar ensures that innovation continues to thrive across industries that depend on realistic, data-rich visualization tools.
CoStar Responds to Zillow’s Pattern of Misrepresentation
In a strongly worded statement, Gene Boxer, CoStar Group’s General Counsel, addressed Zillow’s allegations directly, framing them as part of a broader strategy to distract from Zillow’s mounting legal troubles.
Zillow is trying to mislead agents to divert attention from five lawsuits filed against Zillow in the last four months,” Boxer said. “Rather than addressing its own pattern of anti-competitive and deceptive practices, Zillow is spreading false claims about CoStar Group and Matterport to undermine trust in our technologies and partnerships.
Boxer outlined a growing list of legal challenges currently facing Zillow, underscoring that these lawsuits reflect serious and recurring concerns from multiple industry stakeholders and regulators:
- Compass vs. Zillow – Compass has filed a lawsuit accusing Zillow of enforcing an anticompetitive listing ban that harms fair market competition.
- CoStar Group vs. Zillow – CoStar has sued Zillow for massive copyright infringement, alleging that Zillow copied and misused proprietary content from CoStar platforms.
- Class Action Lawsuit – A group of plaintiffs has sued Zillow for deceptive lead diversion practices, involving the misleading use of the “Contact Agent” button that reroutes potential buyers to agents who often have no connection to the property listed.
- FTC vs. Zillow – The U.S. Federal Trade Commission has brought action against Zillow for entering into an anticompetitive agreement with Redfin, allegedly restricting fair competition in the real estate marketplace.
- Five States vs. Zillow – Five separate state attorneys general have also filed lawsuits against Zillow for similar anticompetitive agreements, reinforcing the pattern of misconduct identified by the FTC.
Boxer added that Zillow’s recent partnership with ChatGPT—which it promotes as a tool for property recommendations—is also “being questioned by multiple MLS organizations” due to concerns about data use, accuracy, and compliance with listing regulations.
Zillow’s Attempt to Distract from Competitive Pressure
CoStar Group believes Zillow’s latest misrepresentation of Matterport Spaces is not accidental but rather a deliberate tactic to sow confusion among agents and consumers at a time when CoStar’s own real estate platforms, such as Homes.com, are rapidly gaining market share.
According to CoStar, the growing success of Homes.com and its integration with Matterport’s cutting-edge 3D virtual tour capabilities has intensified competition in the residential listing space—a competition Zillow appears increasingly unprepared to handle. As CoStar’s products deliver richer, more accurate, and more transparent listings, Zillow’s dominance has been challenged in both traffic growth and consumer trust.
“Zillow’s misstatements are a pretext to exclude a superior, competing product from its network,” Boxer said. “Resorting to these anticompetitive tactics against CoStar Group demonstrates that Homes.com and Matterport are succeeding.”
Commitment to Transparency, Innovation, and Consumer Choice
CoStar Group reaffirmed that it remains deeply committed to transparency, fair competition, and open access for all Matterport users. The company’s ecosystem thrives on interoperability—allowing agents, developers, and consumers to move seamlessly across platforms without fear of restriction.
The company emphasized that consumer choice and agent empowerment are core values underpinning CoStar’s mission. The flexibility to post Matterport 3D virtual tours on any site ensures agents can reach the widest audience possible while giving consumers richer insights into properties. By contrast, attempts by competitors to limit or misrepresent access to such tools only harm the end user and slow down industry progress.
As the real estate sector continues to evolve through digital transformation, CoStar Group is doubling down on its investments in 3D modeling, AI-powered analytics, and cross-platform integrations that promote openness rather than exclusion. The company reiterated that it will continue to defend innovation and fairness in the marketplace, even when confronted by misleading claims or anticompetitive behavior from rivals.
