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1h ago

FTC Sues Zillow and Redfin to Unwind Rental-Listing Pact It Calls Anti-Competitive

Regulators say a $100 million exclusivity deal removed Redfin as a rival in multifamily advertising, prompting a bid for structural remedies.

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.
FILE - This March 16, 2015 photo shows a "now leasing" sign outside an apartment complex near Millville, N.J. (AP Photo/Mel Evans, file)
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Overview

  • The complaint filed in the U.S. District Court for the Eastern District of Virginia alleges Zillow paid Redfin $100 million to make Redfin an exclusive syndicator of Zillow’s multifamily listings.
  • The FTC says Redfin agreed to cease multifamily advertising sales, terminate existing contracts, transition those customers to Zillow, and stay out of the market for up to nine years.
  • The filing describes layoffs of about 450 Redfin employees tied to the business and alleges sensitive competitive information was shared as Zillow selectively rehired some staff.
  • The agency seeks to unwind the agreement and pursue structural relief including potential divestitures, business reconstruction, injunctions, and compliance reporting to restore competition.
  • Zillow defends the arrangement as pro-competitive, Redfin and parent Rocket dispute the claims, and both companies’ shares fell after the announcement as the commission voted 3-0 to authorize the suit.