Yahoo Finance·2025-12-04 14:59Core Insights - The partnership between Zillow and Redfin is under scrutiny for potentially violating antitrust laws by reducing competition in the rental listings market [6][7] - The Federal Trade Commission (FTC) and five state attorneys general have filed lawsuits against the companies, alleging unlawful agreements that harm renters and property operators [6][7] Group 1: Market Dynamics - The internet listing service advertising market is highly concentrated, with Zillow and Redfin being key players [3] - In February 2025, Zillow and Redfin announced a deal making Zillow the exclusive provider for Redfin's websites, aiming to increase access for renters and property owners [4] Group 2: Legal Proceedings - Redfin agreed to cease its contracts with advertising customers and stop competing in the multifamily property market for up to nine years [5] - The FTC's complaint highlights that the partnership could lead to higher prices and worse terms for renters, reducing competition incentives for both companies [6] Group 3: Financial Aspects - Zillow paid Redfin $100 million to facilitate its exit from the rental listing market [7] - Following the agreement, Redfin dismantled its multifamily rental internet listing service and laid off approximately 450 employees [5]