Dive Brief:
- Two separate antitrust lawsuits aimed at Zillow and Redfin will be combined, U.S. District Court Judge Anthony Trenga ruled Nov. 26, in a legal fight over an arrangement that regulators say enables Zillow to dominate online rental ads. The two housing listing giants launched a partnership in February in which Zillow paid Redfin $100 million to essentially exit the rental listing market.
- The FTC filed a lawsuit against Zillow and Redfin on Sept. 30 in the U.S. District Court for the Eastern District of Virginia, alleging the two companies conspired to eliminate competition in the rental listings market in violation of federal antitrust laws. The next day, attorneys general in Arizona, Connecticut, New York, Virginia and Washington state filed a suit with similar allegations.
- In response to the cases merging, a Zillow spokesperson told Multifamily Dive in emailed comments, “We consented to this consolidation and look forward to showing the Court how our listing syndication with Redfin benefits both renters and property managers and has expanded access to multifamily listings across multiple platforms.”
Dive Insight:
The market for internet listing service advertising is highly concentrated, the FTC said in its Sept. 30 complaint, with Zillow and Redfin operating two of the three leading rental ILS networks in the U.S.
In February 2025, Zillow and Redfin announced a deal to make Zillow the exclusive provider of Redfin's family of websites — including Rent.com and ApartmentGuide.com — saying the partnership would "give renters access to a larger pool of available apartments" and enable property owners to "reach an even wider audience of renters," per a Feb. 11 press release.
Redfin agreed to end its contracts with advertising customers and help Zillow take over that business; stop competing in the market for multifamily properties for up to nine years; and serve as the exclusive syndicator of Zillow listings.
Following the agreement, Redfin also moved quickly to dismantle its multifamily rental internet listing service business and fired about 450 employees, according to an Oct. 1 press release from Washington Attorney General Nick Brown.
In the Oct. 1 filing, the five state attorneys general argued that the companies violated the Sherman Act by unlawfully agreeing to eliminate competition and engaged in an unlawful acquisition in violation of the Clayton Act and asked the court to issue an order to restore competition and prevent future violations. The FTC said the partnership harms property operators and renters by likely leading to higher prices and worse terms, and reduces incentives for Zillow and Redfin to compete for renters.
Redfin previously told Multifamily Dive that it disagreed with the allegations and was confident that it would be vindicated by a court of law. Zillow said the partnership is “pro-competitive and pro-consumer” because it connects property managers to more high-intent renters so they can fill their vacancies and more renters can get a home.
“We remain confident in this partnership and the enhanced value it has delivered and will continue to deliver to consumers," the Zillow spokesperson said.
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