HomeBusinessZillow settles FTC claims it paid Redfin to cease competing on residence listings

Zillow settles FTC claims it paid Redfin to cease competing on residence listings

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The US Federal Trade Commission and a group of states settled with Zillow forward of trial on Monday, ending claims the on-line actual property platform illegally paid Rocket Companies’ Redfin $100 million to cease competing in residence rental listings.

The FTC and 5 states were prepared to argue at trial scheduled to begin Monday that the Zillow-Redfin partnership drove up prices for landlords and decreased itemizing high quality for renters. More than 30% of Americans lease their properties, according to census knowledge.

Under the settlement, Redfin can proceed to show Zillow advertisements on its websites but will resume its rental promoting enterprise within six months, the FTC and states said.

The Federal Trade Commission and 5 states were set to argue at trial scheduled to begin Monday that the Zillow-Redfin partnership drove up prices for landlords and decreased itemizing high quality for renters. keBu.Medien – inventory.adobe.com

While Democratic state attorneys basic have clashed with the Trump administration on other issues, both the FTC and the states called the settlement a win.

New York Attorney General Letitia James said the lawsuit restored competitors in on-line itemizing platforms, “critical tools that New Yorkers rely on to find affordable homes.”

Virginia, Arizona, Connecticut and Washington were also plaintiffs.

FTC Chair Andrew Ferguson said the settlement will present competitors in rental markets that is “an integral component of President Donald Trump’s domestic housing agenda.”

A Redfin spokesperson said the settlement permits the firm to keep its partnership with Zillow through at least 2030 while constructing its own leases enterprise.

Redfin can proceed to show Zillow advertisements on its websites but will resume its rental promoting enterprise within six months as half of the settlement, according to the FTC and states. AP Photo/Cliff Owen

Zillow leases government Michael Sherman said the settlement is optimistic and “enables us to keep our energy on innovating for renters and property managers.”

Zillow and Redfin made a deal in February 2025: Redfin would wind down its rental itemizing enterprise, refer its clients to Zillow, and show copies of Zillow’s listings on its web site. Redfin agreed to keep out of the enterprise for up to 9 years.

In return, Zillow agreed to pay Redfin $100 million, plus charges for each renter who signaled curiosity in a property.

The FTC sued the corporations, as did New York, Virginia, Arizona, Connecticut and Washington. They said that before the deal, Zillow and Redfin were competing to record vacancies in buildings with more than 25 items.

After Redfin stopped competing, Zillow clients paid an common of 14.5% more per itemizing, an professional for the FTC and states estimated, while some property managers stopped shopping for on-line listings.

Zillow had said in courtroom papers that the deal put more listings on both websites and helped it compete with market chief CoStar Group. Exclusive offers are frequent in the business, Zillow had said.

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