Core Viewpoint - Attorneys general from five states have filed a lawsuit against Zillow and Redfin, alleging anti-competitive practices in the online housing rental market, following a similar lawsuit from the Federal Trade Commission [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Zillow paid Redfin $100 million to cease its apartment rental advertising business and transfer its clients to Zillow, which is seen as a tactic to eliminate competition [2][3]. - The agreement is described as a maneuver to insulate Zillow from direct competition with Redfin, potentially harming renters by reducing options and increasing costs [3][4]. - The lawsuit seeks an injunction to prevent the alleged collusion and proposes restructuring the businesses to foster competition [5]. Group 2: Market Impact - Zillow, Redfin, and CoStar, which owns Apartments.com, dominate the market, accounting for 85% of all market revenue, indicating a significant concentration of power in the online rental space [4]. - Following the announcement of the lawsuit, shares of Zillow and Redfin's parent company, Rocket Companies, experienced a decline, reflecting investor concerns over the legal challenges [6][7]. Group 3: Company Responses - Redfin has publicly disagreed with the allegations, asserting that the partnership with Zillow has expanded access to rental listings and allowed for cost reductions, which they claim benefits apartment seekers [6]. - Zillow has not yet provided a comment on the lawsuit from the states [6].