Federal Trade Commission Sues Zillow, Redfin, Over Rental Agreement
The Federal Trade Commission says a new deal between real estate giants Zillow and Redfin violates anti-trust laws.
Zillow enters $100 million dollar deal with Redfin
According to Geekwire and Real Estate News, September 30th Zillow paid Redfin $100 million to become the exclusive provider of multi-family listings on the Redfin sites rent.com and ApartmentGuide.com
The Feds claim the two illegally conspired to eliminate rental market competition. The suit says Redfin has now terminated its multi-family listings, and for the duration of the agreement, will stop competing to provide what are called ILS or internet listing services for multi-family properties.
The FTC notes that until this agreement, Zillow and Redfin competed "fiercely" for this portion of the real estate market.
According to Geekwire, the complaint reads in part:
“In effect, Defendants have agreed to transform Redfin from an independent and vibrant competitor that markets and sells its own ILS multifamily advertising into one of several websites that provide nothing more than a copy of Zillow’s ILS listings."
Zillow countered by saying the agreement is "pro-competitive and pro-consumer," meanwhile, Redfin claims the number of customers by the end of 2024 made it clear they could not maintain their rental salesforce.
The suit could force the two companies to potentially sell of assets and restructure portions of their business.
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