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The real estate technology landscape just got more complicated. In a move that caught many agents off guard, Zillow has removed all Matterport 3D virtual tours from its platform, including StreetEasy listings. If you woke up Monday morning to find your carefully crafted virtual tours missing from your Zillow listings, you're not alone—and this isn't just a technical glitch.
This is the latest salvo in an increasingly heated battle between two industry giants, and it has real implications for how you market your properties going forward.
On Monday, October 20, 2025, agents across the country started receiving emails from Zillow and StreetEasy with unwelcome news: their Matterport 3D virtual tours had been stripped from their listings.
The reason? CoStar Group, which acquired Matterport for $1.6 billion earlier this year, declined to renew its API agreement with Zillow. But that's only part of the story.
According to Zillow, CoStar also updated Matterport's terms of service on September 29, introducing new restrictions that prevent Matterport content from appearing on "third party platforms, websites, or listing services that compete with CoStar Group's products and services." Translation: No Matterport tours on Zillow, which competes directly with CoStar's Homes.com.
Zillow's Position:
Zillow didn't mince words in its response, accusing CoStar of trying to "wall off data and restrict how real estate professionals use the content they pay for." A Zillow spokesperson called the move "harmful to everyone in the industry" and emphasized that the platform supports multiple 3D media solutions, including its own Zillow 3D Home tool.
CoStar's Counterargument:
CoStar fired back hard, accusing Zillow of "intentionally misrepresenting" the licensing terms. According to CoStar, neither Matterport's nor CoStar Group's media licensing terms have actually changed. They claim that "Matterport customers can share their Spaces anywhere, including on Zillow," and that Zillow hasn't been using the Matterport API feed "for years."
CoStar went further, suggesting this is a distraction tactic by Zillow to divert attention from an ongoing copyright infringement lawsuit over 46,000 watermarked photos that allegedly appeared on Zillow Rentals without permission.
Here's where it gets technical—and important for you to understand.
Under CoStar's updated media licensing terms, customers retain ownership of media they submit to CoStar platforms. However, when it comes to CoStar Group media (which includes Matterport 3D virtual tours), customers receive only a "limited, revocable, non-transferable, non-sublicensable license."
This means:
The key question everyone's asking: Who's telling the truth? Can agents actually still share Matterport tours on Zillow, as CoStar claims, or are the new terms truly restrictive?
Regardless of who's right, the practical reality is clear: Matterport tours are no longer appearing on Zillow listings right now. If virtual tours are a cornerstone of your marketing approach, here's what you need to know:
Alternative 3D Tour Options Still Available on Zillow:
Zillow has promised to provide updates in the coming days about how agents can capture and upload new 3D virtual tours to replace the removed Matterport content.
The Silver Lining:
This disruption might actually be an opportunity to diversify your virtual tour strategy. Relying on a single platform or technology always carries risk, as we're seeing now. Exploring alternative solutions could give you more flexibility and reduce your vulnerability to future platform disputes.
This Matterport controversy isn't happening in a vacuum. It's part of a much larger competitive battle between Zillow and CoStar, driven by CoStar CEO Andy Florance's ambitious plan to dethrone Zillow with Homes.com.
Florance has been vocal in his criticism of Zillow's business model, accusing the company of "blackmailing" agents and "hijacking" listings. The copyright lawsuit over watermarked photos is just one front in this escalating war.
A Bit of Good News for Zillow:
While dealing with the Matterport situation, Zillow did catch a break this week. The U.S. Supreme Court declined to review REX's antitrust case against Zillow and the National Association of REALTORS, effectively ending a four-year legal battle that had challenged Zillow's practices. Lower courts had already ruled that Zillow and NAR did not conspire to conceal non-MLS listings.
Immediate Actions:
Long-Term Strategy:
The removal of Matterport tours from Zillow is frustrating, especially for agents who've invested time and money into creating these immersive experiences. But it's also a reminder of a fundamental truth in our increasingly digital industry: the platforms we depend on are engaged in fierce competition, and agents can sometimes become collateral damage.
Whether CoStar's terms truly prohibit sharing Matterport content on Zillow or whether Zillow is making a strategic choice to remove them, the result for agents is the same—you need alternatives, and you need them now.
The good news? Virtual tour technology is more accessible than ever, with multiple providers offering competitive solutions. The Matterport removal might be an inconvenience, but it doesn't have to derail your marketing strategy.
Stay flexible, stay informed, and remember: the best marketing strategy is one that doesn't depend too heavily on any single platform's goodwill.
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