Sep. 30 at 7:24 PM
Shares of Zillow Group and Rocket Companies fell after the FTC sued Zillow and Redfin, alleging an illegal agreement in the rental housing advertising market. The complaint claims that in February 2025, Zillow paid Redfin
$100 million and other compensation to remove it as a competitor in internet listing services (ILS) for multifamily rentals.
Redfin allegedly agreed to terminate advertising contracts, refrain from competing in multifamily rental advertising for up to nine years, and act merely as a Zillow listing syndicator. The FTC warned this deal could lead to higher prices, reduced service quality, and diminished incentives for innovation in the rental advertising market.
As part of the arrangement, Redfin reportedly laid off hundreds of employees and helped Zillow hire select staff. While presented as a "partnership," the FTC describes it as a move to circumvent competition.
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