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After Zillow’s announcement that it was removing Matterport 3D tours from listing on its website, CoStar Group, which owns Matterport, is looking to set the record straight.
On Monday, Zillow told clients it was removing Matterport Spaces from its website after CoStar decided not to renew its Matterport API agreement and changed its terms of service surrounding media created by CoStar-owned entities.
Matterport sought to clarify things in a letter sent to its clients from the Matterport leadership team on Monday evening.
In the letter Matterport wrote that the team was writing to clients to “correct the intentional misrepresentations that [they] may have heard Zillow spreading regarding Matterport Spaces.”
According to Matterport, clients can still share the Matterport Spaces they created anywhere, including Zillow.
Despite Zillow’s assertions and the Sept. 29, 2025, “last updated” tag on CoStar’s terms of service webpage, Matterport told clients that “neither Matterport’s nor CoStar Group’s media licensing terms have changed.”
Matterport tells clients in the letter that if Zillow has decided to remove Matterport Spaces from its website, it is a “decision Zillow made unilaterally to the detriment of their customers.”
Matterport also clarified that media created by “CoStar Group explicitly for use on [its] platforms is proprietary, Matterport customers can share their Spaces anywhere.”
The letter also addressed the Matterport API agreement that Zillow claims CoStar decided not to renew. Matterport calls Zillow’s reference to this agreement “a complete red herring,” noting that it is “unrelated to Matterport’s customers’ ability to share Spaces.”
The letter goes on to claim that the point of these claims by Zillow was to divert attention away from the “slew of lawsuits” it is currently facing, including one from CoStar, as well as others from Compass and the Federal Trade Commission.
“Zillow is now playing games to stir up customer confusion and distract from its mounting legal troubles. In addition to diverting leads and banning listings, this is yet another example of Zillow harming agents and consumers,” the letter states. “We regret that Zillow’s actions have caused you any inconvenience, and we look forward to continuing to work with you.”
In a statement about the decision to remove the Matterport Spaces, a Zillow spokesperson wrote that “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.”
“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,” the spokesperson added.
Zillow did not immediately return HousingWire’s request for comment on Matterport’s letter to clients.
