The Federal Trade Commission filed a lawsuit Tuesday against real estate companies Zillow and Redfin, claiming the two companies made a deal that the FTC believes violates antitrust laws. According to the agency, the agreement aimed to eliminate competition in the market for online rental advertising on internet listing services.
The FTC alleges Zillow paid Redfin $100 million in February 2025 to suppress competition in the online real estate listing market. Redfin allegedly agreed to terminate contracts with companies advertising on its platform and assist Zillow in acquiring those relationships.
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Redfin also reportedly agreed to stay out of a significant segment of the online real estate advertising market for nearly a decade and to display Zillow’s listings, making the site more of a mirror than a competitor. As part of the alleged deal, Redfin laid off hundreds of employees. Redfin is also accused of helping Zillow selectively rehire some of those employees.
The FTC contends the companies disguised the arrangement as a standard business partnership to circumvent fair competition laws.
Impact on renters and the housing market
“Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” Daniel Guarnera, director of the FTC’s Bureau of Competition, said in a statement. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market—one that’s critical for renters, property managers, and the health of the overall U.S. housing market.”
Guarnera added that the “unlawful agreement” may limit advertising options for customers, especially within the multifamily rental advertising market and could reduce the quality of online rental platforms due to a lack of competition.
Company responses and legal action
Zillow described the deal as “pro-competitive and pro-consumer,” while a Redfin spokesperson said the company “strongly disagrees with the FTC’s allegations,” according to statements provided to the Associated Press.
The lawsuit seeks to halt the ongoing agreement between the two companies and includes potential remedies such as divestiture of assets and restructuring of their businesses. Five states, including Virginia, Arizona, Connecticut, New York and Washington, have also officially filed a lawsuit against Zillow and Redfin related to antitrust laws.
