U.S. FTC says it secures order resolving antitrust concerns with Zillow-Redfin agreement

The U.S. Federal Trade Commission (FTC) has secured a court order allowing its antitrust lawsuit against Zillow and Redfin to proceed, rejecting the companies’ motion to dismiss the case. The lawsuit, filed in September 2025, alleges that Zillow and Redfin entered into an illegal agreement in February 2025, whereby Zillow paid Redfin $100 million to exit the multifamily rental advertising market and serve as an exclusive syndicator of Zillow’s listings. The FTC contends that the arrangement violates antitrust laws by eliminating competition in a concentrated market, potentially leading to higher advertising costs for property managers and reduced incentives for innovation and user experience improvements.

Zillow and Redfin have defended the agreement as pro-competitive, arguing that it expands access to rental listings for consumers and allows Redfin to redirect resources toward improving its platform. However, U.S. District Judge Anthony Trenga ruled in May 2026 that the FTC plausibly alleged anticompetitive conduct under the Sherman Act, Clayton Act, and FTC Act. The trial, set to begin on August 24, 2026, will determine whether the agreement unlawfully stifles competition in the rental advertising market.

The FTC and five state attorneys general seek to unwind the agreement and restore competitive dynamics, potentially through structural remedies such as asset divestitures. The outcome of the case could have broader implications for antitrust enforcement in digital real estate markets, particularly as regulators continue to scrutinize industry consolidation and its impact on consumers.