FTC settles anti-trust suit against Zillow, Redfin

The U.S. Federal Trade Commission and a coalition of states reached a settlement with online real estate giant Zillow, ending allegations that the company unlawfully paid competitor Redfin $100 million to halt their competition in apartment rental listings. The FTC and five states contended that this partnership inflated costs for landowners and reduced the quality of listings for renters. Nearly one-third of the country's population comprises renters, as per census data.

The resolution terminates Redfin's obligation to cease competing. Redfin pledged to rebuild its rental advertising operations within six months, according to the FTC. Zillow disputes the claim of anticompetitive behavior and asserts that the arrangement benefits everyone by increasing listings across multiple platforms. Redfin's spokesperson stated that the settlement permits the company to sustain its partnership with Zillow until at least 2030 while establishing its standalone rentals business.

A Zillow spokesperson declined to comment immediately. The case was set to go to trial before a federal judge in Alexandria, Virginia, on Monday. Virginia, Arizona, Connecticut, New York, and Washington, along with the FTC, brought the lawsuit. For a period of up to nine years, Redfin and Zillow agreed in February 2025: Redfin would cease its rental listing business, direct clients to Zillow, and exhibit copies of Zillow's listings on its website.

In exchange, Zillow committed to paying Redfin $100 million, plus fees for each renter expressing interest in a property. The FTC and states claimed that prior to the agreement, Zillow and Redfin were competing to list units in properties with over 25 units. Upon Redfin's withdrawal from competition, Zillow customers experienced an average increase of 14.5% in listing prices, according to an FTC and states expert.

Some property managers even discontinued their use of online listing sites altogether. Zillow argued in court papers that the deal resulted in renters encountering more listings on both sites and helped it compete against market leader CoStar Group. Exclusive deals are common in the industry, Zillow contended.