Zillow and Redfin settle FTC antitrust case

Zillow and Redfin person reached a settlement with the Federal Trade Commission (FTC) and 5 states, ending a legal fight implicit a 2025 concern that the FTC claimed wounded contention successful the rental-listing market. The colony was announced connected Monday, conscionable arsenic the lawsuit was scheduled to caput toward proceedings this morning. 

The lawsuit stems from a woody announced past twelvemonth successful which Redfin agreed to show Zillow’s rental listings connected its websites alternatively than vie straight with Zillow for rental advertisers. The statement could person kept Redfin retired of the rental advertizing concern for arsenic agelong arsenic 9 years. Redfin owns Rent.com and ApartmentGuide.com, 2 large rental-listing platforms. 

According to the FTC and attorneys wide from Arizona, Connecticut, New York, Virginia, and Washington, Zillow agreed to wage Redfin $100 cardinal to support Redfin from competing with Zillow.

The companies defended the concern arsenic a mode to springiness renters entree to a larger excavation of listings. The FTC, however, argued that Zillow was paying 1 of its largest competitors to halt competing, perchance allowing the institution to complaint higher prices and supply little favorable presumption to spot managers. It could person besides reduced the prime of rental listings disposable to consumers.

Under the projected settlement, Redfin volition beryllium required to reenter the rental advertizing business. The bid besides removes restrictions that antecedently constricted Redfin’s quality to vie independently for property-management customers.

The colony doesn’t wholly extremity the narration betwixt the 2 companies. Redfin tin proceed displaying Zillow’s rental listings, but it volition erstwhile again beryllium capable to vie for its ain customers. Redfin volition beryllium capable to merchantability advertising, show listings from its ain clients, and prosecute caller rental customers without being required to stock delicate concern accusation with Zillow.

The Zillow-Redfin lawsuit comes conscionable months aft the DOJ’s colony with Ticketmaster, different antitrust lawsuit involving allegations that a ascendant institution utilized its powerfulness to suppress competition. However, 26 of the 30 authorities attorneys wide who initially sued Live Nation alongside the DOJ chose to proceed pursuing the case and won their suit successful April.