FTC Sues to Block $100M Zillow-Redfin Deal

The U.S. Federal Trade Commission sued to block a $100 million rental-listing syndication deal that would make Zillow the exclusive provider of multifamily listings for Redfin and its Rent.com and ApartmentGuide sites, alleging the agreement illegally paid Redfin to stop competing. The complaint was filed in the U.S. District Court for the Eastern District of Virginia and says Zillow’s payment and related terms — including hosting listings for buildings with more than 25 units and alleged long non‑compete effects — eliminate Redfin as a rival in the online listing services market. The FTC argues the deal reduces the number of sites consumers can search, risks driving up advertising costs for property managers, and could blunt platform innovation, calling it a payoff to a competitor to stop competing. The agency is seeking a permanent order blocking or unwinding the partnership as an unlawful restriction of competition. Redfin, which was acquired by Rocket Companies in July, will be defended in the litigation by its new parent, and shares of Zillow and Redfin/Rocket fell after the filing.