FTC Sues Zillow and Redfin Over Deal
Introduction to the Lawsuit
The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Zillow and Redfin, two major real estate companies, accusing them of entering into an illegal deal to suppress competition in online rental advertising. This lawsuit was filed on Tuesday and alleges that the agreement between the two companies started in February, when Zillow paid Redfin $100 million. In exchange for this payment and other compensation, Redfin agreed to end contracts with advertising partners, stop competing ads for multifamily properties for up to nine years, and serve as a syndicator of Zillow listings on its own sites.
Details of the Agreement
The complaint notes that Redfin fired hundreds of employees shortly after the announcement of this plan. It is also alleged that the company helped Zillow hire "its pick" of these workers. This agreement has raised concerns about the impact on competition in the online rental advertising market. The FTC argues that Zillow and Redfin’s actions were a violation of federal antitrust laws.
By WYATTE GRANTHAM-PHILIPS
NEW YORK (AP) — The U.S. Federal Trade Commission is suing Zillow and Redfin, accusing the real estate companies of entering what the regulator says is an illegal deal to suppress competition in online rental advertising.
FTC’s Position
"Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market — one that’s critical for renters, property managers, and the health of the overall U.S. housing market," Daniel Guarnera, director of the FTC’s Bureau of Competition, said in a statement Tuesday. Guarnera added that Zillow and Redfin’s actions were a violation of federal antitrust laws. The Commission argues that the companies’ "unlawful scheme" may reduce incentives for further competition, and could lead to higher prices and fewer choices for multifamily rental advertising customers.
Response from Zillow and Redfin
In a statement, a Zillow spokesperson maintained that its "listing syndication with Redfin benefits both renters and property managers" — adding that it had "expanded renters’ access to multifamily listings." The Seattle-based company said the agreement was "pro-competitive and pro-consumer." A spokesperson for Redfin, which was acquired by Detroit-based mortgage giant Rocket Companies earlier this year, added that the company "strongly disagrees with the FTC’s allegations" and was confident about prevailing in court. Redfin reiterated the Zillow partnership had given its users access to more rental listings and advertising customers access to more renters — noting that by the end of 2024, the company had determined that its own number of advertising customers "couldn’t justify the cost of maintaining our rentals sales force."
Next Steps
The FTC still maintains that the agreement isn’t the partnership Redfin and Zillow say it is. The Commission, which authorized filing Tuesday’s complaint in a 3-0 vote, is seeking to get the companies to end this deal, in addition to other relief from the court — such as potential divestiture of assets or business reconstruction "to restore the competition."
Conclusion
The lawsuit filed by the FTC against Zillow and Redfin has significant implications for the online rental advertising market. The outcome of this case will determine whether the agreement between the two companies is allowed to stand, and what consequences they may face for their actions. As the case progresses, it will be important to monitor the developments and consider the potential impact on the market.
FAQs
Q: What is the basis of the FTC’s lawsuit against Zillow and Redfin?
A: The FTC alleges that Zillow and Redfin entered into an illegal deal to suppress competition in online rental advertising.
Q: What did Zillow pay Redfin as part of the agreement?
A: Zillow paid Redfin $100 million.
Q: How has Redfin responded to the allegations?
A: Redfin strongly disagrees with the FTC’s allegations and is confident about prevailing in court.
Q: What is the potential outcome of the case?
A: The outcome of the case will determine whether the agreement between the two companies is allowed to stand, and what consequences they may face for their actions.
Originally Published: September 30, 2025 at 5:58 PM EDT
