Zillow and Redfin resolve litigation over deal FTC claims suppresses rental listings competition
Summary
The U.S. Federal Trade Commission (FTC) reached a settlement with Zillow and Redfin over a deal that the FTC said reduced competition in online rental listings. The agreement requires Redfin to restart its rental listings business to promote more competition in the market.Key Facts
- The FTC accused Zillow and Redfin of making a deal that harmed competition in online apartment rental ads.
- Redfin agreed to shut down its own rental listings and only repost Zillow’s listings in exchange for $100 million and other benefits.
- The deal was set to last until February 2025, which the FTC said could lead to higher prices and fewer choices for renters and property managers.
- The settlement requires Redfin to restart its standalone rental listings business and hire enough workers within six months or face penalties.
- Redfin had laid off hundreds of employees after making the Zillow deal.
- Redfin will still share Zillow’s listings but can now advertise other rental listings independently.
- Zillow said the partnership with Redfin is good for consumers and competition and is glad to continue working together.
- Redfin, now owned by Rocket Companies, said the deal lets them keep partnering with Zillow while also building their own rental business.
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