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CoStar Group Clarifies Position on Matterport Spaces Amid Zillow's Controversy

Last updated: October 22, 2025
Taurigo

CoStar Group, Inc. (NASDAQ: CSGP), a prominent player in the real estate analytics and digital marketplace sector, made headlines on October 22, 2025, by addressing allegations from Zillow regarding the use of Matterport Spaces. The company has reaffirmed its commitment to supporting Matterport 3D virtual tours while countering claims made by Zillow that it has imposed restrictions on these digital assets.

1. Setting the Record Straight

The press release emphasized that Zillow's assertion—that CoStar Group has limited the use of Matterport 3D virtual tours to its own platforms—was categorically false. CoStar clarified that any individual or business that subscribes to Matterport and creates a 3D virtual tour, referred to as a Matterport Space, retains the freedom to display that content across various platforms, including Zillow.

In a significant move, the California Regional Multiple Listing Service (CRMLS) confirmed that its members are permitted to utilize their Matterport Spaces for listings, effectively countering Zillow's claims. This endorsement highlights the flexibility and accessibility of Matterport technology for real estate professionals.

2. A Diverse Range of Applications

CoStar Group has reported that thousands of businesses leverage Matterport Spaces across a multitude of sectors. These applications range from architectural design to construction management, insurance adjustments, and industrial operations. The versatility of Matterport technology underscores its value beyond just real estate listings, making it a vital tool for various industries.

However, CoStar made it clear that proprietary media created exclusively for CoStar platforms—such as Matterport Spaces shot by CoStar photographers for Homes.com or Apartments.com—remain limited to those platforms, ensuring a competitive edge.

3. Legal Challenges and Accusations

Gene Boxer, CoStar Group’s General Counsel, did not shy away from addressing the ongoing legal battles involving Zillow. He pointed out that Zillow is currently facing five lawsuits, including significant cases related to anti-competitive practices and copyright infringement. Notably, these lawsuits include:

  1. A lawsuit from Compass over Zillow's anti-competitive listing bans.
  1. CoStar Group's own lawsuit against Zillow for alleged massive copyright infringement.
  1. A class-action suit concerning deceptive lead diversion practices.
  1. An FTC lawsuit regarding anti-competitive agreements with Redfin.
  1. Legal actions from five states alleging similar anti-competitive behavior.

Boxer accused Zillow of attempting to mislead agents as a distraction from these pressing legal issues, suggesting that the firm’s latest initiatives—such as its partnership with ChatGPT—are also under scrutiny from Multiple Listing Services (MLSs).

4. Competitive Landscape

The press release painted a picture of a competitive real estate technology landscape where CoStar Group’s offerings, particularly Homes.com and Matterport, are gaining traction. Boxer emphasized that Zillow's tactics appear to be an attempt to undermine a superior competing product, which he sees as indicative of CoStar's growing success in the market.

5. CoStar Group Overview

Founded in 1986, CoStar Group has established itself as a global leader in commercial real estate information and analytics. The company’s portfolio includes several well-known brands such as CoStar, LoopNet, Apartments.com, Homes.com, and Matterport. With an impressive reach, CoStar Group reported over 141 million average monthly unique visitors across its platforms in the second quarter of 2025.

Headquartered in Arlington, Virginia, CoStar Group is dedicated to transforming the real estate industry through innovative technology and comprehensive market intelligence. As it continues to navigate a complex competitive landscape, the firm remains committed to empowering its clients with the insights and tools necessary to thrive.

In summary, CoStar Group's press release serves as a robust defense against Zillow's allegations while reinforcing its commitment to the Matterport platform. The ongoing legal disputes may shape the future dynamics of the real estate tech industry, making it an intriguing space to watch in the coming months.

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