Overview
- The Federal Trade Commission and the attorneys general of Virginia, Arizona, Connecticut, New York and Washington announced on Monday that they settled antitrust claims that Zillow paid Redfin $100 million to stop competing in apartment rental listings.
- Under the settlement Redfin must restart and rebuild its rental-advertising business within six months and make multiyear investment commitments meant to restore its capacity to compete.
- The deal preserves listings syndication between Zillow and Redfin but requires remedies including customer contract renegotiation rights, provision of employee information and waivers of non-competes to help move staff back to Redfin.
- Regulators said the original arrangement reduced competition and raised costs for housing providers, with an FTC expert estimating an average 14.5% rise in per-listing fees after Redfin exited, while Zillow has defended the partnership as pro-consumer.
- The settlement is subject to a judge’s approval and does not end related litigation, including shareholder suits that allege Zillow misled investors; Zillow and Redfin say they plan to offer standalone multifamily advertising products in 2027.