5 states sue Zillow, Redfin over $100M agreement after FTC suit

"Like the FTC's suit, this lawsuit alleges that Zillow has no interest in continuing to compete with Redfin on the merits of its rental advertising offering. Instead, on February 6, 2025, Zillow and Redfin executed an unlawful agreement to remove competition from this already highly concentrated market, starting with a $100 million payment to Redfin to exit the Internet Listing Services advertising market, the complaint states."

"The complaint makes identical claims about Redfin agreeing to stop selling multifamily advertising, to terminate existing multifamily advertising contracts, and to terminate and transfer employees, as well as proprietary data to Zillow. This agreement is nothing more than an end run around competition that insulates Zillow from head-to-head competition on the merits with Redfin for customers advertising multifamily buildings, the filing states."

"Our partnership with Zillow has given Redfin.com visitors access to more rental listings and our advertising customers access to more renters. By the end of 2024, it was clear that the existing number of Redfin advertising customers couldn't justify the cost of maintaining our rentals sales force. Partnering with Zillow cut those costs and enabled us to invest more in rental-search innovations on Redfin.com, directly benefiting apartment seekers, the spokesperson added."

"Our listing syndication with Redfin benefits both renters and property managers and has expanded renters' access to multifamily listings across multiple platforms. It is pro-competitive and pro-consumer by connecting property managers to more high-intent renters so they can fill their vacancies and more renters can get home. We remain confident in this partnership and the enhanced value it has delivered and will continue to deli"

A lawsuit alleges Zillow executed an unlawful agreement with Redfin on February 6, 2025, that removed competition in a concentrated rental advertising market via a $100 million payment for Redfin's exit from Internet Listing Services advertising. The complaint asserts Redfin agreed to stop selling multifamily advertising, terminate existing multifamily contracts, and transfer employees and proprietary data to Zillow. The arrangement allegedly insulates Zillow from head-to-head competition for multifamily advertising customers. Redfin says the partnership expanded rental listings access, reduced costs, and enabled investment in rental-search innovations and expects vindication in court. Zillow describes the syndication as pro-competitive and pro-consumer.

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