Redfin and Zillow must change agreement that hurts competition, FTC says

The Federal Trade Commission (FTC) says Redfin and Zillow must alter a business deal that stifled competition in the home rental sector and disadvantaged consumers. The FTC's settlement, revealed on Monday, wraps up an antitrust lawsuit the agency launched last year. The FTC claimed Zillow handed Redfin $100 million to stop offering listing services for multifamily properties and to repost exclusively Zillow-provided apartment listings.

In the agreement, Redfin also promised to terminate its contracts with advertising clients and transfer them to Zillow, according to the complaint. The FTC announced on Monday that it will force the real estate giants to eliminate anti-competitive clauses from their commercial agreement. Redfin is required to rejoin the market with more home listings to give renters more options.

Restoring competition will lower prices and benefit both renters and property management firms, the agency said in a statement. The FTC reached a settlement with Zillow the morning the case was set to go to trial at a district court in Virginia. FTC Director Daniel Guarnera said in a statement that this agreement provides better, faster, and more certain outcomes for renters and property management firms than would have been possible after winning at trial, including firm and enforceable commitments by Redfin to relaunch its rentals advertising business.

A Redfin spokesperson stated that the agreement permits the company to maintain its rental partnership with Zillow through at least 2030 while developing and investing in a separate rentals business. A Zillow spokesperson welcomed the settlement, calling it "great news for renters, housing providers, and the rental market broadly."