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].