Zillow settles FTC claims it paid Redfin to stop – Business News
The US Federal Trade Commission and a group of states settled with Zillow forward of trial on Monday, ending claims the online real estate platform illegally paid Rocket Companies’ Redfin $100 million to stop competing in condo rental listings.
The FTC and 5 states have been 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 rent their houses, in accordance to census information.
Under the settlement, Redfin can proceed to show Zillow adverts on its websites however will resume its rental promoting business within six months, the FTC and states mentioned.
The Federal Trade Commission and 5 states have been 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 – stock.adobe.com
While Democratic state attorneys basic have clashed with the Trump administration on different issues, each the FTC and the states known as the settlement a win.
New York Attorney General Letitia James mentioned the lawsuit restored competitors in online itemizing platforms, “critical tools that New Yorkers rely on to find affordable homes.”
Virginia, Arizona, Connecticut and Washington have been additionally plaintiffs.
FTC Chair Andrew Ferguson mentioned the settlement will present competitors in rental markets that’s “an integral component of President Donald Trump’s domestic housing agenda.”
A Redfin spokesperson mentioned the settlement permits the company to keep its partnership with Zillow by way of a minimum of 2030 whereas building its own leases business.
Redfin can proceed to show Zillow adverts on its websites however will resume its rental promoting business within six months as half of the settlement, in accordance to the FTC and states. AP Photo/Cliff Owen
Zillow leases government Michael Sherman mentioned 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 business, refer its prospects to Zillow, and show copies of Zillow’s listings on its website. Redfin agreed to keep out of the business for up to 9 years.
In return, Zillow agreed to pay Redfin $100 million, plus charges for every renter who signaled curiosity in a property.
The FTC sued the businesses, as did New York, Virginia, Arizona, Connecticut and Washington. They mentioned that earlier than the deal, Zillow and Redfin have been competing to record vacancies in buildings with more than 25 items.
After Redfin stopped competing, Zillow prospects paid an average of 14.5% more per itemizing, an skilled for the FTC and states estimated, whereas some property managers stopped shopping for online listings.
Zillow had mentioned in courtroom papers that the deal put more listings on each websites and helped it compete with market chief CoStar Group. Exclusive offers are common within the industry, Zillow had mentioned.
