- The FTC, as well as a bipartisan coalition of AGs from five states—Virginia, Arizona, Connecticut, New York, and Washington—have separately filed lawsuits against Zillow Group, Inc. and Zillow, Inc. (collectively, “Zillow”) and Redfin Corporation alleging that the companies entered into an unlawful agreement that stifled competition in the online multifamily rental advertising market in violation of federal antitrust laws. The FTC and AGs worked together to bring these suits, both of which were filed in the U.S. District Court for the Eastern District of Virginia.
- The lawsuits challenge a February 2025 deal in which Zillow paid Redfin approximately $100 million to close its multifamily rental advertising business and transition existing customers to Zillow.
- In their complaints, the FTC and the AGs both contend that while Zillow and Redfin framed their agreement as a “partnership,” the arrangement was, in reality, an agreement not to compete that insulated Zillow from head-to-head competition with Redfin. They argue that the agreement harms property managers seeking to advertise properties and renters searching for housing.
- The complaints seek injunctive and structural relief, including possible divestitures and compliance reporting, among other forms of relief. Unlike the FTC, the AGs also seek attorneys’ fees and costs.