Core Viewpoint - The Federal Trade Commission (FTC) is suing Zillow and Redfin for allegedly entering into an unlawful agreement that eliminates Redfin as a competitor in the advertising rental homes market on internet listing services (ILS) [1][3]. Company Overview - Zillow and Redfin are two of the largest rental ILS networks by traffic and revenue, operating platforms such as Zillow Rentals, Rent.com, and Apartmentguide.com [2]. Allegations and Legal Actions - The FTC's complaint states that in February, Zillow and Redfin allegedly made an illegal agreement to dismantle Redfin as a competitor in the ILS advertising market for multifamily rental properties in exchange for a payment of $100 million and other compensation from Zillow [3]. - Redfin reportedly agreed to terminate its contracts with advertising customers and assist Zillow in taking over that business [3]. Market Reaction - Following the announcement of the lawsuit, Zillow's stock experienced a decline of 4% [4].

Core Viewpoint - Zillow allegedly paid Redfin $100 million to cease competition in online apartment rental listings, as stated in a lawsuit by the U.S. Federal Trade Commission [1] Company Summary - Zillow's payment to Redfin is characterized as an anti-competitive practice aimed at reducing competition in the online real estate market [1] - The lawsuit highlights concerns regarding market manipulation and the potential negative impact on consumers seeking rental listings [1] Industry Summary - The incident raises significant questions about competitive practices within the online real estate industry, particularly in the rental segment [1] - Regulatory scrutiny from the U.S. Federal Trade Commission indicates a growing focus on maintaining fair competition in digital marketplaces [1]