Zillow has reached a settlement with the U.S. Federal Trade Commission (FTC) and five states, ending allegations that the online real estate platform paid Redfin $100 million to stop competing in the apartment rental-listing market.
The agreement resolves a dispute over a February 2025 deal in which Redfin agreed to wind down its rental advertising business, refer customers to Zillow and remain out of the market for as long as nine years. Regulators argued that the arrangement weakened competition, increased costs for landlords and reduced the quality and availability of rental listings.
Under the settlement, Redfin will rebuild its rental advertising business within six months, allowing it to compete independently once again. The company will also maintain its partnership with Zillow through at least 2030 while developing its standalone rentals operation.
The FTC and states alleged that Zillow customers paid an average of 14.5% more per listing after Redfin exited the market, based on an expert analysis presented in the case. Regulators said the deal particularly affected competition for apartment buildings with more than 25 units.
Zillow has denied that the agreement was anticompetitive, arguing that the partnership expanded the number of rental listings available to consumers and helped the company compete with larger industry rivals, including CoStar Group.
The settlement came as the case was scheduled to proceed to trial in federal court in Alexandria, Virginia. It puts an end to the immediate legal dispute while allowing Redfin to re-enter the rental advertising market, potentially restoring competition in a sector used by millions of American renters.
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