Wire flash
Zillow settles FTC claims it paid Redfin $100M to stop competing on apartment listings
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
The U.S. Federal Trade Commission and five states announced a settlement with Zillow, ending claims that the online real estate platform illegally paid Rocket Companies' Redfin $100 million to stop competing in apartment rental listings. The FTC and states argued the Zillow-Redfin partnership drove up costs for landlords and decreased listing quality for renters. Under the settlement, Redfin agreed to rebuild its rental advertising business within six months. Zillow has denied the arrangement is anticompetitive, stating it benefits everyone by making more listings available. The case was scheduled to go to trial before a federal judge in Alexandria, Virginia. Virginia, Arizona, Connecticut, New York, and Washington brought the case alongside the FTC. Before the deal, Zillow and Redfin were competing to list vacancies in buildings with more than 25 units. After Redfin stopped competing, Zillow customers paid an average of 14.5% more per listing, according to an expert estimate.
Source report
Source: Reuters By: Jody Godoy Reading time: 2 min
The U.S. Federal Trade Commission (FTC) and a group of states have announced a settlement with Zillow, resolving allegations that the online real estate platform illegally paid Rocket Companies' Redfin $100 million to cease competing in apartment rental listings.
Key Allegations
The FTC and five states argued that the Zillow-Redfin partnership drove up costs for landlords and reduced listing quality for renters. According to census data, more than 30% of Americans rent their homes.
Settlement Terms
- The settlement terminates the agreement that required Redfin to stop competing.
- Redfin has agreed to rebuild its rental advertising business within six months, per the FTC.
Responses from Parties Involved
- Zillow has denied that the arrangement was anticompetitive, stating that the deal benefits everyone by making more listings available across more sites.
- A Redfin spokesperson said the settlement allows the company to maintain its partnership with Zillow through at least 2030 while building its own standalone rentals business.
- A Zillow spokesperson did not immediately respond to a request for comment.
Background of the Case
The case was scheduled to go to trial before a federal judge in Alexandria, Virginia, on Monday. It was brought by the FTC alongside Virginia, Arizona, Connecticut, New York, and Washington.
The Deal (February 2025)
- Redfin agreed to wind down its rental listing business, refer customers to Zillow, and display copies of Zillow's listings on its site.
- Redfin agreed to stay out of the business for up to nine years.
- In return, Zillow agreed to pay Redfin $100 million, plus fees for each renter who signaled interest in a property.
Impact on Competition and Pricing
Before the deal, Zillow and Redfin were competing to list vacancies in buildings with more than 25 units. After Redfin stopped competing:
- Zillow customers paid an average of 14.5% more per listing, according to an expert for the FTC and states.
- Some property managers stopped using online listing sites altogether.
Zillow's Defense
Zillow stated in court papers that the deal led to renters seeing more listings on both sites and helped it compete with market leader CoStar Group. The company noted that exclusive deals are common in the industry.
Reporting by Katharine Jackson and Daphne Psaledakis; Editing by Chizu Nomiyama
Source
Yahoo FinanceWestern
Part of this Story
Zillow Settles FTC Antitrust Lawsuit Over Redfin Rental Listings Deal