Key facts
- The FTC settled antitrust claims against Zillow and Redfin concerning a deal to suppress competition in online rental advertising.
- The settlement requires Redfin to restart its standalone rental listings business.
- The FTC alleged Zillow paid Redfin $100 million to exclusively repost Zillow's listings and exit the apartment listings market.
- The FTC stated the resolution aims to restore competition and provide better outcomes for renters and property management companies.
- Zillow and Redfin maintain their partnership is pro-consumer and procompetitive.
The U.S. Federal Trade Commission (FTC) has reached a settlement with Zillow and Redfin to resolve claims that the companies engaged in an illegal deal to suppress competition in online rental advertising. The FTC filed a proposed order with the U.S. District Court for the Eastern District of Virginia, which requires Redfin to restart its standalone rental housing listings business. The commission stated this move will restore competition in the market for rental property listings.
The FTC alleged that nearly a year ago, Zillow paid Redfin $100 million and other compensation to cease its internet listings and exclusively repost Zillow’s apartment listings, effectively staying out of the apartment listings market for up to nine years. The commission argued this pact violated federal antitrust laws, potentially leading to higher prices and fewer choices for customers advertising multifamily rentals.
Daniel Guarnera, director of the FTC’s Bureau of Competition, stated that the settlement provides better and quicker results than a trial. Zillow, based in Seattle, affirmed that its partnership with Redfin is pro-consumer and procompetitive. A spokesperson for Redfin said the agreement allows them to maintain their rental partnership with Zillow through at least 2030 while developing their own rentals business. The FTC noted that Redfin fired hundreds of employees shortly after announcing its deal with Zillow, and under the proposed order, Redfin must hire enough staff to maintain its rentals business within six months or face penalties.