Zillow settles FTC claims it paid Redfin $100M to stop competing on apartment listings

Published Aug 24, 01:48 PM UTC

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.