Washington, D.C., September 30, 2025 — The Federal Trade Commission (FTC) has filed a lawsuit against Zillow Group, Inc. and Redfin Corporation, accusing the real estate platforms of entering into an unlawful agreement designed to suppress competition in online rental advertising. The FTC alleges that Zillow paid Redfin to exit the market for advertising multifamily rental properties on internet listing services (ILSs).
According to the FTC’s complaint, Zillow and Redfin — which operate two of the largest rental listing networks in the United States by traffic and revenue, including Zillow Rentals, Rent.com, and ApartmentGuide.com — agreed in February 2025 to eliminate Redfin as a direct competitor. Under the deal, Redfin accepted $100 million and other compensation from Zillow in exchange for abandoning its advertising operations for multifamily rentals.
The agency contends that, as part of the unlawful arrangement, Redfin terminated its advertising contracts, assisted Zillow in taking over its customers, agreed to stay out of the advertising market for up to nine years, and became an exclusive syndicator of Zillow’s listings, making Redfin’s platforms a mirror image of Zillow’s.
“Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market—one that’s critical for renters, property managers, and the health of the overall US housing market.”
The FTC asserts that the agreement harms both property managers and renters, leading to fewer choices, higher advertising costs, and reduced innovation in rental listing technology. By removing a key competitor, the deal allegedly violates Section 7 of the Clayton Act, which prohibits acquisitions or arrangements that may substantially lessen competition.
The authority seeks to halt Zillow and Redfin’s illegal agreement and may compel divestitures or structural remedies to restore competition in the rental advertising market. The FTC also warns that the pact could diminish incentives for both companies to enhance their platforms, reduce prices, or improve user experience.
In addition to federal oversight, the FTC collaborated with several state attorneys general during the investigation and plans to continue joint enforcement efforts. The agency filed the complaint before the US District Court for the Eastern District of Virginia.
