Housing Monopoly? Feds Sue Zillow & Redfin, Claiming $100 Million Deal Illegally Eliminated Rental Listings Rivalry—What This Means for Renters.
WASHINGTON D.C. – In a bombshell move challenging the power of digital real estate giants, the Federal Trade Commission (FTC) has filed a major antitrust lawsuit against Zillow and Redfin, alleging an illegal conspiracy to suppress competition in the lucrative online rental listings market.
The complaint, filed on September 30th, alleges that Zillow paid Redfin a staggering $100 million in February 2025 as part of an unlawful agreement to essentially eliminate Redfin as an independent competitor for advertising multifamily properties.
The Details of the Alleged Anti-Competitive Agreement
According to the FTC’s lawsuit, the core of the deal was a swap of cash for Redfin’s withdrawal from the market:
- Market Exit: Redfin allegedly agreed to stop competing in the advertising market for multifamily properties (apartments) for a period of up to nine years.
- Customer Termination: Redfin agreed to end contracts with its existing advertising customers.
- Exclusive Syndication: Redfin and its affiliated sites, including Rent.com and ApartmentGuide.com, agreed to exclusively show Zillow listings, effectively making their sites a copy of Zillow’s inventory.
In a highly scrutinized part of the complaint, the FTC noted that Redfin subsequently fired hundreds of employees tied to its rental business and then allegedly helped Zillow to hire its pick of those terminated workers.
Why the FTC Says This Hurts You
FTC officials argue that this alleged payoff is a clear violation of federal antitrust laws, specifically citing Section 7 of the Clayton Act, which prohibits acquisitions that substantially lessen competition or tend to create a monopoly.
“Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” stated Daniel Guarnera, Director of the FTC’s Bureau of Competition. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market—one that’s critical for renters, property managers, and the health of the overall U.S. housing market.”
The FTC warns that this loss of competition will likely lead to:
- Higher Prices and worse terms for property managers advertising vacant units.
- Reduced Innovation and less incentive for Zillow and Redfin to improve their services for renters.
The lawsuit seeks to terminate the illegal agreement and may push for “a potential divestiture of assets or the reconstruction of businesses to restore competition.” The outcome of this case could redefine how major players operate in the U.S. digital housing market.
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