The Federal Trade Commission (FTC) has filed a lawsuit against Zillow Group and Redfin Corporation over an alleged unlawful agreement that eliminates Redfin as a competitor in the market for advertising multifamily rental properties on internet listing services (ILSs). The complaint alleges that in February 2025, Redfin agreed to stop competing in multifamily rental advertising, act as an exclusive Zillow syndicator, and end its customer contracts in exchange for $100 million and other compensation.
Daniel Guarnera, Director of the FTC’s Bureau of Competition, stated, “Paying off a competitor to stop competing against you is a violation of federal antitrust laws. 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 stated that the agreement harms both property managers and renters by reducing competition, likely leading to higher prices and fewer incentives for investment and innovation on ILS platforms. The complaint also cites violations of Section 7 of the Clayton Act and seeks to stop Zillow and Redfin from continuing the agreement, including possible divestiture of assets or restructuring of the businesses to restore competition. The Commission approved the lawsuit 3-0, with collaboration from several state attorneys general, aiming to protect the rental advertising market and maintain fair competition for consumers.
