Zillow and Redfin have reached a settlement with the Federal Trade Commission and five states, allowing Redfin to re‑enter the rental‑advertising market. The deal lifts a $100 million payment clause and restores direct competition between the two real‑estate platforms.

  • Zillow paid Redfin $100 million to limit competition
  • Redfin will resume independent rental‑advertising activities
  • FTC argued the original deal harmed renters and landlords

The Federal Trade Commission (FTC) together with attorneys general from Arizona, Connecticut, New York, Virginia and Washington announced a settlement that ends the antitrust lawsuit against Zillow and Redfin. The announcement came just as the case was slated for trial on Monday morning.

Background

Last year Redfin agreed to display Zillow’s rental listings on its websites instead of competing directly for rental advertisers. The arrangement could have kept Redfin out of the rental‑advertising business for up to nine years, even though it owns two major platforms – Rent.com and ApartmentGuide.com.

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FTC’s Allegations

The FTC contended that Zillow’s $100 million payment to Redfin was a classic anticompetitive “pay‑to‑stay‑out” scheme. By removing a major competitor, Zillow could potentially raise advertising rates and impose less favorable terms on property managers, ultimately reducing the quality and quantity of listings available to renters.

Settlement Terms

Under the settlement, Redfin must re‑enter the rental‑advertising market and is no longer bound by the restrictive clauses that limited its ability to compete for property‑management customers. While Redfin may continue to display Zillow’s listings, it can now sell its own advertising, showcase listings from its own clients, and pursue new rental customers without sharing sensitive business data with Zillow.

Why This Matters

BozokMedia analysis shows that the settlement restores a more competitive environment in the U.S. rental‑listing market, potentially lowering advertising costs for landlords and increasing inventory visibility for renters nationwide.

"This decision rebalances power in a market that had become overly consolidated under Zillow," says antitrust scholar Dr. Anita Rao.
Did You Know?: Zillow’s 2022 acquisition of Rent.com was valued at $350 million, making it a dominant player before the FTC case.

Frequently Asked Questions

Q1: Will Redfin still show Zillow’s listings after the settlement?

A: Yes, Redfin can continue to display Zillow’s rental listings, but it will also be free to run its own advertising and attract its own renters.

Q2: How will this affect rental seekers?

A: Increased competition should drive down advertising costs for landlords and expand the pool of listings visible to renters.