Yahoo Financeยท2025-09-30 21:32Core Viewpoint - The U.S. Federal Trade Commission (FTC) is suing Zillow and Redfin for allegedly entering an illegal agreement that suppresses competition in online rental advertising [1][5]. Group 1: Allegations and Details of the Agreement - The FTC claims that the agreement began in February when Zillow paid Redfin $100 million, in exchange for Redfin ending contracts with advertising partners and stopping competing ads for multifamily properties for up to nine years [2]. - Redfin reportedly laid off hundreds of employees shortly after the announcement of this plan and allegedly assisted Zillow in hiring selected workers from these layoffs [3]. Group 2: Impact on Competition - The FTC argues that Zillow's payment to eliminate Redfin as an independent competitor in a concentrated advertising market could reduce competition, leading to higher prices and fewer choices for multifamily rental advertising customers [4][5]. - The Commission emphasizes that the actions of both companies violate federal antitrust laws and may diminish incentives for further competition in the market [5]. Group 3: Company Responses - Zillow maintains that its listing syndication with Redfin benefits both renters and property managers, claiming it has expanded access to multifamily listings and is pro-competitive [6]. - Redfin, which was recently acquired by Rocket Companies, strongly disagrees with the FTC's allegations and believes it will prevail in court, asserting that the partnership has increased access to rental listings for users [6].