Zillow, Redfin Fail to End FTC Lawsuit Claiming They Suppressed Rental Competition

May 8: A federal judge dealt a blow to Zillow and Redfin by denying their motion to dismiss a lawsuit filed by the FTC. The agency asserts that these real estate giants unlawfully conspired to curb competition in online apartment rental listings, potentially driving up advertising prices for landlords.

FTC's Allegations

U.S. District Judge Anthony Trenga in Alexandria, Virginia, said the FTC plausibly alleged that the defendants violated antitrust law. In its complaint last September, the FTC said Zillow paid Redfin $100 million plus a monthly fee over nine years in exchange for Redfin ending its contracts with advertising customers and serving as an exclusive syndicator of Zillow's listings. The FTC said the February 2025 agreement would likely raise prices to advertise vacancies in multifamily rental buildings.

Companies' Defense

In seeking dismissal, Zillow and Redfin argued their agreement promoted competition and benefited renters and property managers. They said renters who preferred Redfin's listing service could view Zillow listings there, while property managers had two listing services to attract renters. They also said the agreement let Redfin redirect funds from its underperforming rental advertising business to upgrade its listing service.

Company Statements

Zillow said in a statement: "We remain confident we will demonstrate the pro-competitive and consumer benefits of our partnership with Redfin in court." Redfin, which is owned by Rocket Companies, said it was confident it would be vindicated and that its partnership with Zillow "enabled us to invest more in rental-search innovations on Redfin.com, directly benefiting apartment seekers."