The Federal Trade Commission is suing Zillow and Redfin, accusing the companies of striking an illegal deal that reduced competition in the rental listings market.
According to the FTC, Zillow (which owns Trulia, HotPads, and StreetEasy) agreed to pay Redfin (which operates Rent.com and ApartmentGuide) to syndicate its rental ads. The deal meant many of the same listings appeared across both companies’ platforms, limiting renters’ options.
As part of the agreement, Redfin allegedly ended existing contracts with advertising customers, transferred them to Zillow, and agreed not to compete for multifamily rental listings for up to nine years. The FTC also claims Redfin laid off hundreds of employees and helped Zillow selectively rehire some of them.
The regulator argues that the arrangement amounts to Zillow paying off a competitor to exit the market, while disguising it as a “partnership.” With partnerships across Redfin, Realtor.com, and its own network, Zillow now controls the majority of online rental listings for large apartment complexes—potentially driving up costs for landlords and making it harder for renters to find options outside its ecosystem.
Zillow has not yet commented on the lawsuit.
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