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FTC and Five States Reach Agreement to Restore Competition Between Zillow and Redfin

The Federal Trade Commission, joined by five states, notified the court that it will file a stipulated order that resolves its litigation against Zillow and Redfin and restores competition in the online platforms that renters use to find apartments and property managers use to list rentals, the agency announced. "The order eliminates the key term in a 2025 agreement between Zillow and Redfin under which Zillow paid Redfin $100 million for Redfin to shut down its internet listing services business, exclusively repost apartment listings provided by Zillow, transition its customers to Zillow and stay out of the ILS market for up to nine years. The order also requires Redfin to reenter the ILS market with far more apartment listings and to make enforceable commitments to invest tens of millions of dollars to ensure Redfin will be a far stronger competitor than it was before the 2025 agreement. Restoring competition in the ILS market is expected to drive down costs and spur innovation that benefits renters and property management companies," the FTC stated.

Zillow and Redfin Refute Claims After Lawsuits from AGs and FTC, According to CNBC

Attorneys general from New York, Arizona, Connecticut, Washington and Virginia filed a lawsuit against Zillow (Z) and Redfin (RDFN) on Wednesday, claiming the companies schemed to stop competition in the online housing rental market. The lawsuit follows a similar one filed by the FTC. The AGs are seeking an injunction to ban the two companies from allegedly scheming and proposes a possible restructuring of the businesses to maintain competition. "Redfin strongly disagrees with the allegations and is confident we will be vindicated by a court of law," a spokesperson for the company said in a statement provided to CNBC, while a Zillow spokesperson said the company maintains that its partnership with Redfin is "pro-competitive and pro-consumer."

State Attorneys General File Antitrust Lawsuit Against Zillow and Redfin

Attorneys general from New York, Arizona, Connecticut, Washington and Virginia filed a lawsuit against Zillow (Z) and Redfin (RDFN) on Wednesday, claiming the companies schemed to stop competition in the online housing rental market. The lawsuit follows a similar one filed by the FTC this week. The AGs are seeking an injunction to ban the two companies from allegedly scheming and proposes a possible restructuring of the businesses to maintain competition. "This agreement between Zillow and Redfin not to compete is illegal," said Virginia Attorney General Jason Miyares. "Zillow paying Redfin to exit the market harms renters and property owners by taking away free market incentives to provide high-quality services that businesses and consumers rely on. My Office is suing to protect Virginians from this anticompetitive conduct."