Zillow Paid Redfin $100 Million. What Was It Buying? The FTC Says They Broke the Law

Zillow settled US antitrust claims over a 2025 deal where it paid Redfin $100M to stop competing in apartment rental listings. The FTC and five states alleged the agreement reduced competition, increased landlord costs, and affected listing quality. Under the settlement, Redfin must resume its rental business within six months while continuing to display Zillow ads. Zillow and Redfin both welcomed the agreement, which allows their partnership to continue through 2030.

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Zillow and Redfin settled FTC allegations over a $100M deal to halt rental listing competition. The FTC claimed the agreement raised costs for landlords and reduced listing quality. Redfin will resume rental ads within six months but can keep Zillow ads. Both companies and involved states called the settlement a victory.

The FTC settled an antitrust case with Zillow and Redfin, requiring them to unwind a 2025 agreement where Zillow paid Redfin $100M to exit the apartment listing market. Redfin must relaunch its rental advertising business within six months of the order's finalization, with Zillow providing support. Both companies must comply for 10 years, and they will pay $2M to reimburse state attorneys general.

The FTC and five states reached a settlement with Zillow and Redfin, requiring Redfin to reenter the rental listings market. Redfin must restart its rental advertising business within six months and invest tens of millions. Zillow must remove restrictions that limited Redfin's competition. The settlement resolves a lawsuit alleging Zillow paid Redfin $100 million to exit the market.

Redfin, a Rocket Companies subsidiary, reached a resolution with the FTC and five states, extending its partnership with Zillow for multifamily rental listings and lead payments through 2030. Redfin retains $100 million from the original agreement and can now build a standalone rentals advertising business and compete directly with Zillow.