The Federal Trade Commission (FTC) has filed a lawsuit against both Zillow and Redfin over an agreement that eliminates Redfin as a competitor in the market for placing advertising of rental housing on internet listing services (ILSs).
Zillow Group and Zillow Inc., and Redfin Corporation operate two of the nation’s largest rental ILS networks by traffic and revenue, including sites such as Zillow Rentals, Rent.com, and ApartmentGuide.com. The complaint alleges that in February 2025, Zillow and Redfin entered into an agreement to dismantle Redfin as a competitor in the ILS advertising market for multifamily rental properties.
In exchange for a $100 million payment and other compensation from Zillow, the complaint alleges, Redfin agreed:
- To end its contracts with advertising customers and help Zillow take over that business
- To stop competing in the advertising market for multifamily properties for up to nine years
- To serve merely as an exclusive syndicator of Zillow listings, making Redfin sites effectively a copy of the listings that appear on Zillow’s sites
The FTC alleges that the agreement destroys competition for multifamily rental properties advertising on ILSs, harming both property managers seeking to advertise properties for rent and renters searching for a home. The FTC complaint alleges that the agreement constitutes an unlawful acquisition in violation of Section 7 of the Clayton Act.
“Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “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. The FTC will do our part to ensure that Americans who are looking for safe, affordable rentals receive all the benefits of robust competition between internet listing services like Zillow and Redfin.”
The FTC alleges that Zillow and Redfin framed their agreement as a “partnership,” but in reality, the arrangement is an end run around competition that insulates Zillow from competing head-to-head on the merits with Redfin. In connection with the agreement, Redfin fired hundreds of employees, then helped Zillow to hire its pick of those terminated workers.
In its suit, the FTC alleges that the Zillow-Redfin agreement may:
- Lead to higher prices and worse terms for multifamily unit advertising
- Reduce incentives for Zillow and Redfin to compete for renters, including through investment in attracting visitors and innovation to improve user experience when searching on an ILS for a rental property
The FTC’s complaint seeks to stop Zillow and Redfin from continuing their agreement and contemplates a potential divestiture of assets or the reconstruction of businesses to restore competition.
