Business & Finance
Zillow and Redfin settle FTC antitrust lawsuit over rental listing agreement
The deal requires Redfin to relaunch its rental advertising business and removes restrictions from a commercial partnership between the two companies.
The short version
- Zillow and Redfin settled an FTC antitrust lawsuit that accused Zillow of paying Redfin $100 million to shut down its rental listing service and eliminate competition.
- The agreement requires Redfin to relaunch a standalone rental listings advertising business with significantly more listings to restore market competition.
- Zillow must allow property management customers to renegotiate contracts without penalties and provide Redfin with staff information to assist in recruitment.
- Redfin will continue to syndicate Zillow's rental listings through at least 2030 without the anticompetitive terms from the original deal.
Key facts
- The FTC and state attorneys general resolved an antitrust lawsuit against Zillow on the morning the case was scheduled to go to trial in a Virginia federal court.[Engadget · CBS News]
- Regulators alleged that Zillow paid Redfin $100 million to stop competing in the apartment rental listing market and transfer its ad customers to Zillow.[The Verge · Engadget · CBS News]
- Under the terms of the settlement, Redfin must reenter the apartment listing advertising market to improve selection and lower costs for renters.[The Verge · Engadget · CBS News]
- Zillow is required to allow customers to renegotiate existing contracts without penalties and must share employee information with Redfin to facilitate hiring.[Engadget]
- A Redfin spokesperson stated the agreement permits Redfin to continue syndicating rental listings from Zillow through at least 2030 while rebuilding its independent business.[CBS News]