FTC Resolves Legal Action Against Zillow and Redfin to Restore Competition in Online Rental Listing Market
The Federal Trade Commission, along with five states, has announced that it will be filing a stipulated order to resolve its legal action against Zillow and Redfin. This order aims to restore competition in the online platforms used by renters to find apartments and property managers to list rentals. The agreement eliminates a key term in a 2025 deal between Zillow and Redfin, where Zillow paid Redfin $100 million to cease its internet listing services business and exclusively repost apartment listings provided by Zillow. Redfin is required to reenter the market with more apartment listings and invest millions to enhance its competitiveness.
The settlement addresses concerns raised by the FTC regarding an agreement between Zillow and Redfin that hindered competition in the online rental listing market. The FTC alleged that the $100 million payment from Zillow to Redfin to exit the market violated antitrust laws. The resolution ensures that Redfin will relaunch its rentals advertising business, benefiting both renters and property management companies. This outcome aligns with the FTC's commitment to fostering competition in the housing market.
In September, the FTC filed a complaint against Zillow and Redfin, accusing them of engaging in an illegal agreement that disadvantaged competition in the multifamily rental property advertising market. The complaints alleged that Zillow paid Redfin to withdraw from the market and transfer its customers to Zillow, effectively reducing competition. The proposed order, valid for ten years, mandates changes to the agreement between Redfin and Zillow to promote competition in the ILS market.
The stipulated final order, approved by a 2-0 vote, requires Redfin and Zillow to adhere to specific provisions aimed at restoring competition in the ILS market. Redfin must restart its ILS business within set timeframes and provide updates on compliance to the FTC. Both companies are prohibited from entering syndication agreements that restrict competition for ILS customers. The order, once approved by the court, will have the force of law.
The FTC's efforts to promote competition and protect consumers have led to this resolution with Zillow and Redfin. By addressing anticompetitive practices in the online rental listing market, the FTC aims to create a more competitive environment that benefits renters and property management companies. Stay informed about the latest developments by following the FTC on social media and subscribing to press releases.