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Five States Join FTC in Antitrust Suits Targeting Zillow–Redfin Rental Deal

Regulators call the $100 million pact an unlawful exit that would raise advertising costs in a highly concentrated market.

FILE - A Redfin "for sale" sign stands in front of a house on Oct. 28, 2020, in Seattle. (AP Photo/Elaine Thompson, File)
The Federal Trade Commission accused Zillow and Redfin — among the largest rental listing sites in the US — of an antitrust violation from a February 2025 agreement.
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Overview

  • In filings in the Eastern District of Virginia, the FTC alleges Zillow paid Redfin $100 million in February to make Redfin an exclusive syndicator of Zillow’s multifamily listings and to exit rental advertising for up to nine years.
  • Attorneys general from New York, Arizona, Connecticut, Washington and Virginia filed a parallel complaint seeking an injunction and structural relief, including potential divestitures, to restore competition.
  • The complaints say Redfin agreed to terminate its multifamily advertising contracts, transition those customers to Zillow, share competitively sensitive information and lay off about 450 employees, with some later hired by Zillow.
  • Regulators argue the online multifamily rental advertising market is highly concentrated—dominated by Zillow, Redfin and CoStar with roughly 85% of revenue—and warn of higher prices, worse terms and reduced innovation.
  • Zillow calls the arrangement pro-competitive and pro-consumer, and Redfin says it strongly disagrees with the allegations and views the partnership as a cost-saving way to expand listings; both cases are at the initial litigation stage.