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The
FTC said Monday that it filed a proposed order with the U.S.
District Court for the Eastern District of Virginia. It
essentially requires Redfin to restart its standalone rental
housing listings business, which the commission says will
restore competition in the market for rental property listings.
The settlement also resolves litigation brought by state
attorneys general in Arizona, Connecticut, New York, Virginia
and Washington.
“This settlement delivers better, quicker, more certain results
for both renters and property management companies than we would
have been able to achieve after prevailing at trial, including
firm and enforceable commitments by Redfin to relaunch its
rentals advertising business,” Daniel Guarnera, director of the
FTC’s Bureau of Competition, said in a statement.
In its complaint filed almost a year ago, the FTC claimed that
in exchange for $100 million and other compensation from Zillow,
Redfin had agreed to shut down its internet listings and
exclusively repost Zillow's apartment listings, transition its
customers to Zillow and stay out of the apartment listings
market for up to nine years.
The commission argued that the companies’ February 2025 pact
violated federal antitrust laws and could reduce incentives for
competition, leading to higher prices and fewer choices for
multifamily rental advertising customers.
Zillow and Redfin said their agreement was not anticompetitive
and benefited renters and property managers alike.
The FTC’s proposed order requires Redfin to restart its rental
listings business and hire enough staff to maintain it within
six months of the order being finalized, or face financial
penalties. The FTC said Redfin fired hundreds of employees
shortly after announcing its deal with Zillow.
And while Redfin will continue to syndicate Zillow’s listings,
it will be free to seek out and advertise non-Zillow listings,
according to the FTC.
In a statement Monday, Seattle-based Zillow said it “has
consistently maintained the partnership with Redfin is
pro-consumer and procompetitive, and we’re pleased to have found
a resolution that enables its continuation.”
A spokesperson for Redfin, which was acquired by Detroit-based
mortgage giant Rocket Companies last year, said Monday that the
agreement “allows us to maintain our rental partnership with
Zillow through at least 2030 while building and investing in a
standalone rentals business of our own.”
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