New York's Attorney General Opens Antitrust Probe of Compass After Its $1.6 Billion Anywhere Deal
Investigators are examining whether the nation's largest residential brokerage has too tight a grip on the New York housing market. Compass shares tumbled as much as 12% on the news.
The antitrust division of the New York Attorney General's office has opened an investigation into Compass, the residential real estate giant, scrutinizing whether the brokerage's rapid expansion has given it an unlawful grip on the nation's most valuable housing market, people familiar with the inquiry said Wednesday.
Investigators have reached out to leaders at several of New York City's top brokerages, requesting information as part of the probe, according to those people. The Attorney General's office, led by Letitia James, has not publicly confirmed the inquiry, and representatives for both the office and Compass declined to comment. Investors reacted swiftly: shares of Compass fell as much as 12% on Wednesday, the stock's worst single day in more than three months.
The scrutiny follows Compass's $1.6 billion acquisition of Anywhere Real Estate, which closed earlier this year and brought storied brands including Corcoran, Sotheby's International Realty and Coldwell Banker under one roof. The combined company, Compass International Holdings, became the largest residential real estate firm in the country, with more than 340,000 agents and franchisees nationwide.
It is the sheer concentration of that footprint that has drawn regulators' attention. An analysis of RealTrends Verified data published by The Capitol Forum found that the merger could create market-share concentrations "well above presumptively illegal thresholds" in at least a dozen states. In Manhattan, Compass and Anywhere together accounted for more than 80% of 2024 transaction volume; in San Francisco, the figure topped 60%. Federal merger guidelines generally flag market shares above 30% as a potential antitrust concern.
Compass has long argued that the real estate brokerage business remains intensely competitive, with low barriers to entry and agents free to move between firms. The company has also waged its own antitrust battles, including a high-profile fight with the listings portal Zillow over rules governing how homes can be marketed online. But a state-level antitrust investigation introduces a new and more serious threat, one that could ultimately force divestitures or behavioral remedies if regulators conclude the company wields too much power.
For now, the inquiry is in its early stages, and no allegations of wrongdoing have been formally lodged. Antitrust investigations frequently take months or years and do not always result in enforcement actions. Still, the probe lands at a delicate moment for Compass as it works to integrate Anywhere's sprawling network — and it underscores how aggressively state attorneys general have moved to police concentration in industries that touch ordinary consumers, from concert tickets to the roof over their heads.
Originally reported by The Real Deal.