T
he Federal Trade Commission and five states have filed a joint antitrust suit against Zillow and Redfin, alleging that their February partnership to syndicate multifamily rental listings unlawfully limits competition. U.S. District Judge Anthony Trenga merged the FTC case with a related lawsuit from the attorneys general of Arizona, Connecticut, New York, Virginia, and Washington, giving the two companies one fewer separate case to fight.

    The FTC’s complaint, filed on September 30 in the Eastern District of Virginia, claims that Zillow and Redfin conspired to dominate the rental‑listing market. A day later, the five states filed a similar claim, both centered on the same deal. Under the agreement, Zillow paid Redfin $100 million to become the sole provider of multifamily listings for Redfin.com and its owned rental sites—Rent.com and ApartmentGuide.com. (Zillow’s earlier partnership with Realtor.com is not part of this litigation.)

    According to the FTC, Zillow, Redfin, and CoStar (via Apartments.com) control a large share of the rental‑listing space. The agency argues that Zillow’s payment was intended to suppress Redfin as an independent competitor in an already concentrated advertising market that is vital for renters, property managers, and the broader U.S. housing market. “Zillow paid millions to eliminate competition in a critical market,” said Daniel Guarnera, director of the FTC’s Bureau of Competition.

    Zillow and Redfin counter that the syndication is pro‑competitive and benefits consumers. “Our partnership expands renters’ access to listings across multiple platforms,” a Zillow spokesperson told Real Estate News. “By the end of 2024, the cost of maintaining our own rentals sales force was unsustainable. Partnering with Zillow reduced those costs and allowed us to invest more in rental‑search innovations that directly help apartment seekers,” a Redfin representative added.

    The partnership also surfaced in the Compass v. Zillow lawsuit, where Compass alleges that Zillow and Redfin conspired to block Compass listings. Attorneys for Compass cited the rental‑syndication deal as the agreement that “gave rise to the conspiracy” between the two portals.

    In summary, the consolidated case challenges the legality of Zillow’s $100 million payment to Redfin for exclusive multifamily listings, while the companies defend the arrangement as a consumer‑friendly, cost‑saving strategy that enhances the rental‑search experience.