Compass (COMP) Stock Drops 12% as NY Antitrust Probe Report Hits

TLDR

• Compass stock closed down 11.8% at $7.61 on Wednesday following a report of a potential antitrust investigation by the New York Attorney General’s Office.
• The Real Deal reported that AG agents contacted top NYC brokerage firms requesting information about Compass International Holdings’ dominance in the market.
• The probe follows Compass’s $1.6 billion merger with Anywhere Real Estate, which created the largest residential real estate brokerage in the US with over 340,000 agents.
• The DOJ’s antitrust chief previously wanted to investigate the merger but was overruled after Compass appealed to then-Deputy Attorney General Todd Blanche.
• Compass stock is down 28% year-to-date but up 23% over the past 12 months.

Compass stock closed at $7.61 on Wednesday, down 11.8% on the session, after The Real Deal reported that the New York Attorney General’s Office may be investigating the company on antitrust grounds.

Compass, Inc., COMP

The report said agents from the AG’s antitrust division have been contacting leaders at some of New York City’s top brokerage firms, requesting information about Compass International Holdings. The AG’s office declined to comment.

The stock had already been under pressure in 2026. It is now down 28% year-to-date, though it remains 23% higher than it was 12 months ago.

Compass International Holdings was formed earlier this year after the $1.6 billion acquisition of Anywhere Real Estate closed. The combined company is now the largest residential real estate brokerage in the US, with more than 340,000 agents and franchisees.

Anywhere Real Estate is the parent company of brands including Corcoran, Sotheby’s International Realty, and Coldwell Banker.

A Merger That Moved Fast

The deal closed in January, just four months after it was announced in September — well ahead of the nine-month timeline the companies had originally predicted.

That speed raised eyebrows. The Wall Street Journal reported in January that Gail Slater, head of the DOJ’s antitrust division, had wanted to launch an extended review of the deal to determine if it was anticompetitive.

That review never happened. Compass and its legal team appealed to then-Deputy Attorney General Todd Blanche, who decided concerns could be addressed without a formal investigation.

Compass also enlisted Mike Davis, a lawyer with ties to President Trump known for his work getting conservative judges confirmed, to help make its case to Blanche’s office.

A spokeswoman for Blanche’s office told the Journal at the time that the department “complied with its obligations” under antitrust law, and added that “nothing precludes the department from taking an enforcement action in the future if anticompetitive effects are found.”

Congress Had Already Raised Flags

Back in December, Senators Elizabeth Warren and Ron Wyden wrote to both Slater and FTC Chair Andrew Ferguson, urging them to scrutinize the deal.

The senators warned the merger could allow the combined firm to keep commission fees “artificially high” and give it greater control over the homebuying process.

They cited data showing the two companies already held nearly 70% of residential sales by dollar volume in Northern California and more than 40% in New York City.

The New York AG probe now represents a fresh regulatory hurdle for Compass, this time at the state level. Compass could not be reached for comment.

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