Zillow, Redfin Agree to FTC Antitrust Settlement Over $100 Million Rental Listings Deal

Zillow and Redfin have agreed to settle an FTC antitrust case over their $100 million rental listings deal, with Redfin required to reenter the rental advertising market and compete independently with Zillow under a proposed federal court order.

The settlement would keep the companies' rental listings partnership in place while removing restrictions regulators said eliminated Redfin as a separate competitor. Redfin would have six months after the order takes effect to resume selling rental advertising directly to property managers.

The Federal Trade Commission and the attorneys general of Arizona, Connecticut, New York, Virginia and Washington sued Zillow and Redfin last year over their February 2025 agreement. Zillow agreed to pay Redfin $100 million as Redfin wound down its multifamily rental advertising operation, moved customers to Zillow and began relying on Zillow for listings displayed across its rental websites.

Regulators claimed the deal restricted Redfin from competing independently for advertising involving properties with 25 or more units for as long as nine years. Zillow and Redfin deny the allegations and maintain that the partnership benefited consumers and property managers. The settlement resolves the claims without a finding of liability or wrongdoing.

Companies that compete can lawfully enter licensing, distribution, and other business partnerships. Section 1 of the Sherman Act prohibits agreements that unlawfully restrain trade, including arrangements that divide customers or markets or otherwise suppress competition between rivals.

The FTC alleged the Zillow and Redfin agreement crossed that line because Redfin stopped competing for rental advertisers after reaching the deal with Zillow. Regulators said the arrangement reduced the number of independent options available to property managers advertising larger apartment properties.

The government also relied on Section 7 of the Clayton Act, which restricts acquisitions that may substantially reduce competition. The law covers purchases of business assets and competitive operations as well as acquisitions of entire companies.

Regulators claimed Zillow effectively acquired important parts of Redfin's rental advertising operation, including customer relationships and business information, as Redfin left the market. The FTC also brought a claim under the Federal Trade Commission Act, which gives the agency authority to challenge unfair methods of competition.

Redfin would have six months to rebuild the operation. The company must create a system where property managers can submit listings and pay for advertising, hire management, sales, and customer support staff, market the service, and invest capital in the business.

Zillow would continue supplying multifamily rental listings to Redfin under a revised licensing agreement. Redfin would again be able to sell advertising directly to property managers and display listings from its own customers. Provisions requiring Redfin to share certain nonpublic or competitively sensitive business information with Zillow would be removed.

Some Zillow customers would also receive greater freedom to move between the two services. For nine months after Redfin completes its relaunch, customers whose Zillow contracts cannot be canceled within three months must be allowed to leave or renegotiate those agreements without cost or penalty so they can negotiate with Redfin.

Zillow must also assist Redfin for one year in recruiting certain employees who worked in rental advertising sales, marketing, and customer service. Contract restrictions that could keep those workers from accepting jobs with Redfin must be removed.

Zillow and Redfin must pay a combined $2 million to the five states within 30 days after the order is entered. The court filing says the money may be used for litigation costs, monitoring, enforcement, and other purposes allowed under state law and classifies the payment separately from a penalty.

Redfin faces a $1 million penalty if it misses the six-month deadline to restore the rental advertising business. An additional $100,000 would be due for each month of continued noncompliance, with the total capped at $1.6 million.

The proposed order would remain in effect for 10 years and requires Zillow and Redfin to notify regulators before entering certain future rental listing agreements that restrict competition. The U.S. District Court for the Eastern District of Virginia would retain authority to enforce the settlement, which will become binding after the court approves and enters the order.