The Federal Trade Commission has taken Zillow and Redfin to court, accusing the real estate heavyweights of teaming up to choke off competition in the online apartment rental ad world. According to the FTC's complaint, Zillow paid Redfin $100 million earlier this year to host its apartment listings on Redfin's platforms, CNBC reports. The agency says this was not just a business deal but a calculated move to reduce competition, effectively making Redfin's rental sites mirror images of Zillow's.
The complaint alleges that as part of the arrangement, Redfin axed contracts with its own advertising clients and agreed to stay out of the multifamily rental advertising market for as long as nine years. Instead, Redfin would simply syndicate Zillow's listings—essentially playing second fiddle. The FTC also claims Redfin laid off hundreds of employees right after the agreement, then helped Zillow cherry-pick and rehire some of them.
"Paying off a competitor to stop competing against you is a violation of federal antitrust laws," Daniel Guarnera, director of the FTC's bureau of competition, said in a statement. "Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market—one that's critical for renters, property managers, and the health of the overall US housing market."
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Zillow, in response, insisted the partnership is a win for both renters and property managers by expanding access to listings. The company called the deal "pro-competitive and pro-consumer." A Redfin spokesperson said the company "strongly disagrees with the FTC's allegations" and expects to prevail in court, the AP reports.
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