Zillow, Redfin settle antitrust suits with FTC and five states

The U.S. Federal Trade Commission announced Monday it is filing a stipulated order in Eastern Virginia District Court resolving an antitrust complaint against Zillow and Redfin from last September, which alleged they colluded to suppress advertising competition.

Among other things, the proposed order from the FTC prevents Redfin from selling its share of the rental listing advertising market to Zillow for $100 million, and instead forces Redfin to rebuild its rental ad business with Zillow’s assistance.

“This kind of payment to a competitor to exit a market and stop competing violates the antitrust laws,” said Daniel Guarnera, director of the Bureau of Competition at the FTC, in a statement.

Advertisement

Under the terms of a partnership announced by the listings platforms in February 2025, Zillow agreed to pay $100 million for Redfin to stop competing with advertisers, cancel any contracts with existing ad partners, syndicate Zillow listings on its own website, and ultimately stay out of the rental ad market for nine years.

Federal regulators viewed the deal as “nothing more than an end run around competition,” according to the original FTC complaint, accusing Zillow of violating antitrust laws by purchasing Redfin’s share of the rental advertising market.

Attorneys general from Virginia, Arizona, Connecticut, New York and Washington filed separate charges against Zillow and Redfin just days later, echoing the FTC’s claims while seeking similar relief. The states claimed the anticompetitive agreement would lead to apartment managers charging higher rents.

The Zillow-Redfin agreement remains intact under the FTC’s proposed order, which is effective for 10 years and awaits a judge’s final approval and signature, but eliminates key provisions of the initial partnerships. The proposed order also settles the states’ suit.

“We’re pleased with the resolution with the FTC and five states regarding our multifamily rental listings partnership with Redfin,” a Zillow spokesperson said in response to Scotsman Guide’s request for comment. “It’s great news for renters, housing providers and the rental market broadly.”

Settlement details

Under the terms of the agreement, Zillow cannot force Redfin to cancel its rental advertising contracts and help transfer them to Zillow, nor can it otherwise limit or restrict Redfin’s ability to sell advertising services or display its own customers’ listings. Zillow cannot compel Redfin to share nonpublic or “competitively sensitive” information with its competitor, either.

Zillow also cannot impede Redfin’s ability to recruit or retain any Zillow employees, and Zillow is “required to provide employee information to enable Redfin to interview Zillow employees,” said the FTC. Zillow must waive any noncompete, anti-poaching or other strictures preventing its employees from joining with its revamped competitor.

Redfin, meanwhile, has committed to spending millions of dollars reconstituting its rental advertising business, including by hiring a “general manager, salespeople and a fully trained customer support team” to operate and advertise its rental listing services. The company must continue syndicating Zillow’s listings, but also must pursue its own client listings.

“As a result, Redfin will relaunch with significantly more listings than it had prior to the 2025 agreement,” said the FTC in its announcement, also noting that Redfin “faces monetary penalties for failing to follow through on the commitments” in the proposed order. Redfin will have to update the FTC regularly concerning its compliance with the order.

Rocket Companies, the parent company of Rocket Mortgage, one of the largest lenders in the U.S., acquired Redfin in a $1.75 billion deal in July. 

A spokesperson for Rocket Companies characterized the resolution as a “significant win” for Redfin and U.S. consumers.

“This agreement allows us to maintain our rental partnership with Zillow through at least 2030 while building and investing in a stand-alone rentals business of our own,” the spokesperson said.