FTC Alleges Zillow Paid Redfin to Exit Rental Market

• A $100 million deal between Zillow and Redfin is under scrutiny for allegedly reducing competition in online apartment listings.

The U.S. Federal Trade Commission (FTC) has filed a lawsuit accusing Zillow of paying Redfin $100 million to withdraw from the online rental listings market. According to the agency, the agreement limits competition in a sector already dominated by a few players, potentially increasing advertising costs for property owners. The FTC claims the deal also reduces incentives for both companies to improve user experience on their platforms. Filed in Alexandria, Virginia, the case reflects the Commission’s broader efforts to challenge anti-competitive behavior among major tech firms.

Details of the Alleged Agreement

The arrangement, made in February after President Donald Trump took office, involved Redfin transferring most of its rental business to Zillow. As part of the deal, Redfin agreed to stay out of the rental listings market for up to nine years. The company also assisted Zillow in rehiring its former sales team and transitioning customers to Zillow’s platform. Zillow’s listings now appear on Redfin’s site, which the companies say expands visibility for available apartments.

FTC officials argue that the deal undermines competition and could lead to higher costs for advertising rental units in buildings with more than 25 apartments. Daniel Guarnera, head of the FTC’s Bureau of Competition, stated that paying a competitor to exit the market violates federal antitrust laws. The lawsuit follows similar actions against Uber and Live Nation, signaling the agency’s willingness to pursue large corporations over consumer protection issues. Zillow maintains that the partnership benefits both renters and property managers by improving access to listings.

Industry Context and Ownership Changes

Zillow operates several listing platforms, including Trulia, HotPads, and StreetEasy, while Redfin runs Rent.com and ApartmentGuide.com.. Redfin did not respond to requests for comment, though its parent company, Rocket Companies, completed its acquisition in July. The FTC’s case raises questions about long-term market consolidation and the role of strategic partnerships in shaping online real estate services. As digital platforms continue to influence housing access, regulatory oversight may become increasingly central to maintaining fair competition.