The FTC is suing Zillow and Redfin for allegedly conspiring to reduce competition in the online multifamily rental market, impacting millions of renters.

The Federal Trade Commission (FTC) has initiated a lawsuit against real estate companies Zillow and Redfin, alleging that they engaged in illegal practices to stifle competition in the online multifamily rental listing market. According to the FTC, Zillow paid Redfin $100 million to re-host its multifamily rental listings, which led to Redfin terminating contracts with its advertising clients and agreeing to limit its role in the market for up to nine years. This arrangement effectively made Redfin's offerings nearly identical to Zillow's, raising significant antitrust concerns. The FTC's complaint highlights the detrimental effects on renters and property managers, emphasizing the need for competition in the housing market. Following the lawsuit announcement, shares of Zillow and its parent company, Rocket Companies, experienced a notable decline. Both companies have publicly defended their partnership, claiming it enhances consumer access to rental listings and benefits property managers. The FTC seeks to reverse the agreement and restore competition in the rental advertising sector.