As tensions between CoStar Group and Zillow continue to heat up, Zillow has claimed that CoStar did not renew its Matterport API agreement.
CoStar closed its $1.6 billion acquisition of Matterport in March, meaning that it would be up to CoStar to decide if it wanted to renew the API agreement with Zillow. Matterport and CoStar first announced the deal in April 2024.
In addition to not renewing the API agreement, Zillow also claims that the Matterport terms of service, which were updated at the end of September, now restrict the use of Matterport 3D virtual tours, preventing them from being displayed on third-party listing portal sites.
“CoStar Group Media may not be used or displayed on any third party platforms, websites, or listing services that compete with CoStar Group’s products and services,” the terms of service state.
Due to this, Zillow says it has decided to remove all Matterport 3D virtual tours from listings appearing on its website.
“CoStar’s ongoing efforts to wall off data and restrict how real estate professionals use the content they pay for is harmful to everyone in the industry,” a Zillow spokesperson wrote in an email. “Zillow empowers professionals to use a number of 3D media solutions on our platform in addition to our own rich media tool, Zillow 3D Home, which can be used both on and beyond our platforms.”
In an emailed statement, a CoStar spokesperson wrote that Zillow is “intentionally misrepresenting CoStar Group’s and Matterport’s licensing terms.” Despite the Sept. 29, 2025, “last updated” tag at the bottom of the terms of service webpage, the spokesperson claimed that neither Matterport’s nor CoStar Group’s media licensing terms have changed.
“While media created by CoStar Group explicitly for use on our platforms is proprietary, Matterport customers can share their Spaces anywhere, including on Zillow,” the spokesperson clarified.
Additionally, CoStar claims that Zillow has not used the Matterport API feed “for years,” and that CoStar not renewing the API agreement does not have any impact on “Matterport’s customers’ ability to share Spaces.”
“If Zillow is removing Matterport Spaces from its website, that is a decision Zillow made unilaterally to the detriment of their customers,” a CoStar spokesperson wrote in an email. “CoStar Group sued Zillow because it was infringing on CoStar Group’s copyrighted photographs, on a massive scale. Having been caught red-handed, Zillow is now playing games to stir up customer confusion and divert attention away from its many lawsuits. In addition to diverting leads and banning listings, this is yet another example of how Zillow is harming agents and consumers.”
In an email sent to Street Easy customers and obtained by HousingWire, Zillow Group acknowledged that the removal of Matterports from Zillow Group sites was “frustrating.”
“We also know how important virtual tour content is to your marketing strategy, and want to do everything we can to help you replace these removed tours,” the email read. “Our goal is to give you more flexibility when marketing your properties — wherever that may be. We’re committed to providing a high-quality experience while keeping your entire business fully supported. That will always remain our priority.”
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