FTC, five state AGs reach antitrust settlement unwinding $100M Zillow-Redfin deal

Bisnow Published: August 25, 2026 | 5 min read

Redfin will relaunch its apartment listings business as part of a settlement agreement with federal regulators, following a lawsuit that alleged the company stayed out of the market in exchange for $100 million from Zillow Group.

The Federal Trade Commission (FTC) and five state attorneys general reached the deal with Redfin and Zillow after the online apartment and home listings platforms agreed to end a partnership that gave Zillow exclusive apartment listing rights on Redfin's website. Under the settlement, Redfin will continue showing Zillow listings but must also expand its platform into a full-fledged competitor — or face fines from the FTC.

Strongest Antitrust Action in Years

This week's deal amounts to some of the strongest action the FTC has taken to ensure competition, said Daniel Fridman, managing partner at white-collar defense firm Fridman Fels & Soto. As part of the settlement, Redfin will have the opportunity to interview and hire Zillow employees to support the new platform.

"I have looked and have not found a settlement that's been as aggressive as that, kind of forcing your rival to help you rebuild your business." — Daniel Fridman, Fridman Fels & Soto

Background of the Dispute

The litigation stems from a February 2025 deal that made Zillow the exclusive provider of multifamily listings to Redfin. The partnership was pitched by the pair at the time as a boon for renters. Regulators saw it differently and sued in October 2025, arguing that the deal to stop running Redfin's own apartment ads in exchange for the payout was anticompetitive.

The settlement was announced just before a trial was set to start on Monday. It promises to restore Redfin — owned by Rocket Cos. Inc. — as a competitive counterweight to Zillow in the apartment marketplace.

A 'Frenemy' Relationship

"Rocket and Zillow are also becoming more direct competitors, with each of them trying to control more of the consumer experience, whether it's rentals or home purchasing, and so it's a frenemy relationship around the rentals business for now." — Stephen Sheldon, William Blair

Sheldon and other analysts at William Blair described the deal as an "incremental positive" for Zillow in a note to investors Monday, saying it removed regulatory uncertainty while allowing Zillow to continue its partnership with Redfin — just without exclusivity.

For landlords, marketing apartments is unlikely to change radically, Sheldon said.

"I doubt it changes much. This agreement is really just preserving the status quo that's been the status quo for the last year." — Stephen Sheldon, William Blair

Market Reaction

Zillow's stock rose 3% Monday after the settlement was announced, and the company reiterated its 2026 outlook. Rocket shares were up modestly in Monday trading.

Additional Settlement Terms

Zillow will also be required to notify most of its customers that they can renegotiate their contracts with the listings platform in light of the new marketplace competitor.

"This unfair and anticompetitive agreement between two listing giants would have jacked up costs for property managers, and renters would have been the ones to pay the ultimate price. We sued, and today's settlement forces a return to fair competition and choice." — Connecticut Attorney General William Tong

Tong was joined by attorneys general from Arizona, New York, Washington, and Virginia in suing to block the deal.

Zillow's Response

Zillow said it was "pleased to have found a resolution" to the litigation while maintaining that the original partnership benefited consumers and was not anticompetitive.

"This resolution is a win for renters and multifamily housing providers." — Zillow Rentals Senior Vice President