Core Viewpoint - The Federal Trade Commission (FTC) is suing Zillow and Redfin for allegedly conspiring to reduce competition in the online multifamily rental listing market, violating federal antitrust laws [1][2]. Summary by Sections Allegations of Antitrust Violations - The FTC claims that Zillow paid Redfin $100 million to re-host Zillow's multifamily rental listings on Redfin's platforms, which constitutes a violation of antitrust laws [2]. - Redfin agreed to terminate contracts with its existing advertising customers and assist Zillow in acquiring that business, committing to stay out of the multifamily advertising market for up to nine years [3]. Impact on Employment and Market Structure - Following the agreement, Redfin reportedly fired hundreds of employees and then helped Zillow selectively rehire many of them [4]. - The arrangement has led to a situation where Redfin's platforms became virtually identical to Zillow's, reducing competition in the market [3]. Market Reaction and Statements - Following the FTC's announcement, shares of Zillow and Redfin's parent company, Rocket Companies, experienced a sharp decline in afternoon trading [5]. - A Zillow spokesperson defended the partnership, stating it benefits both renters and property managers by expanding access to multifamily listings [6]. Legal Actions and Potential Outcomes - The FTC's lawsuit aims to unwind the agreement and may involve requirements for divestitures or restructuring to restore competition in the rental advertising market [7].