FTC Sues Zillow and Redfin Over Alleged $100M Deal to Suppress Rental-Listing Competition

The Federal Trade Commission (FTC) filed suit alleging that Zillow paid Redfin $100 million to eliminate competition in the online rental-listing market by making Redfin an “exclusive syndicator” of Zillow listings. The FTC says the agreement led Redfin to copy Zillow listings instead of creating its own, ended certain advertising contracts, and reduced competition to the detriment of renters and advertisers.

Key allegations

• Zillow allegedly paid Redfin $100M to limit Redfin’s competition in multifamily rental advertising.
• Redfin allegedly agreed to syndicate Zillow listings and end advertising contracts, reducing rival advertising options.
• The FTC says the deal could raise prices and worsen terms for renters and advertisers, and has asked the court to end the agreement and consider divestiture.

Responses

“This agreement is nothing more than an end run around competition that insulates Zillow from head-to-head competition on the merits with Redfin for customers advertising multifamily buildings,” the FTC complaint states.

Zillow called the syndication deal “pro-competitive and pro-consumer,” saying it expanded renters’ access to listings. Redfin said partnering with Zillow cut costs and allowed it to invest in rental-search innovations.

Context

The FTC also alleges Redfin laid off hundreds of employees, some of whom were later hired by Zillow. Separately, brokerage Compass has sued Zillow earlier this year over alleged anticompetitive practices.

Primary source

FTC press release: https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-sues-zillow-redfin-over-illegal-agreement-suppress-rental-advertising-competition

What this means

If the FTC succeeds, the deal could be unwound and assets potentially divested — a significant enforcement action against major online real-estate platforms that could reshape how rental listings and advertising are distributed.

What do you think? Will this case change how you find apartments or how property managers advertise? Share your thoughts in the comments.