Core 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]

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].