The Federal Trade Commission (FTC) is suing Zillow and Redfin for alleged violations of antitrust laws, claiming the companies colluded to stifle competition in the rental listing market. The lawsuit follows Zillow’s $100 million payment to become Redfin’s exclusive provider for multi-family listings, including its owned platforms like Rent.com and ApartmentGuide.com.
The FTC argues that this partnership undermines competition and harms tenants and real estate managers by eliminating Redfin as an independent competitor. As part of the deal, Redfin is reportedly bound to avoid competing with Zillow on rental ads for up to nine years, leading to the termination of around 450 Redfin positions dedicated to rental listings.
The complaint stresses that the arrangement will result in reduced choices, increased prices, and lower quality for apartment advertising services. Zillow’s spokesperson defended the partnership as beneficial for consumers, claiming it enhances rental access across platforms. In contrast, Redfin’s spokesperson firmly opposed the FTC’s allegations, asserting that the partnership provides greater access to rental listings.
The FTC’s complaint cites violations of the Sherman Act, Clayton Act, and FTC Act, seeking a permanent injunction against the companies’ conduct and requiring compliance reports. The extent of monetary damages has not been specified.
Source link
