Zillow and Redfin failed to dismiss a federal antitrust lawsuit accusing the companies of suppressing competition in online apartment rental listings. U.S. District Judge Anthony Trenga rejected the platforms’ joint request to throw out the case, finding that the Federal Trade Commission plausibly alleged violations of antitrust law. The ruling allows the case to proceed as the companies defend their multi-year rental listings partnership.
The dispute stems from a February 2025 agreement under which Zillow paid Redfin $100 million plus a monthly fee over nine years. According to the FTC, Redfin, a subsidiary of Rocket Companies, agreed to end its contracts with advertising customers and serve as an exclusive syndicator of Zillow’s listings. The agency alleges the arrangement effectively made Redfin’s rental platform mirror Zillow’s, removing head-to-head competition for online vacancy ads in multifamily rental buildings.
The FTC argues the agreement will likely raise listing prices for property managers and reduce incentives for both platforms to improve the rental search experience. Zillow and Redfin countered in their motion to dismiss that the deal promotes competition by giving renters broader listing access and allowing Redfin to redirect spending from its underperforming rental advertising business into platform upgrades. Zillow said it remains confident it will demonstrate the “pro-competitive and consumer benefits” of the partnership in court.
