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The U.S. Federal Trade Commission has filed a lawsuit claiming Zillow paid Redfin USD 100 million to stop competing in online apartment rental listings. The FTC says the deal reduces competition in a concentrated market, likely increasing advertising costs for larger rental properties and limiting improvements in site usability for renters. Under the agreement, Redfin transferred most of its rental business to Zillow, agreed to stay out of the market for up to nine years, assisted with sales staff hiring, and transitioned its customers to Zillow's platform.
The U.S. Federal Trade Commission has accused Zillow of paying Redfin USD 100 million to prevent competition in online apartment rental listings. According to the FTC, this arrangement limits competition in a concentrated market, which may increase advertising costs for rental buildings with more than 25 units. The deal also reduces incentives for the companies to make their platforms more user-friendly for renters. Advertisement
The FTC filed the lawsuit in Alexandria, Virginia, stating that paying a competitor to stop competing violates federal antitrust laws. Daniel Guarnera, who leads the FTC's Bureau of Competition, emphasized that such practices are illegal and undermine fair market competition.
The agreement reportedly took place in February, shortly after the start of the Trump administration. The case demonstrates the FTC's willingness to address potential antitrust violations by large corporations. Earlier this year, the agency also pursued legal action against Uber and Live Nation for alleged consumer protection violations.
Zillow, which runs Trulia, HotPads, and StreetEasy, said the arrangement benefits both renters and property managers. A spokesperson added that the partnership delivers enhanced value to consumers and remains confident it will continue to do so. Zillow CEO Jeremy Wacksman had stated that the deal, which allows Redfin to display Zillow listings, would make more apartments available across multiple platforms, giving renters wider access to listings.
Redfin, owned by Rocket Companies since July, operates Rent.com and ApartmentGuide.com. The FTC explained that as part of the agreement, Redfin transferred most of its online apartment rental business to Zillow, agreed not to compete in the market for up to nine years, assisted Zillow in hiring its former sales team, and helped transition customers to Zillow's platform. Redfin did not immediately respond to requests for comment.
The FTC raised concerns that such agreements can reduce competition in the online rental market, potentially driving up costs for landlords advertising larger properties while slowing platform improvements that make rental searches easier for users.
Source Reuters
5th Jun, 2025
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