US prosecutors, FTC end Zillow-Redfin competition pact

U.S. state attorneys general and the Federal Trade Commission (FTC) have terminated an "illegal" agreement between apartment search platforms Zillow and Redfin, ending a pact that stifled competition. The deal, struck in February 2025, saw Zillow pay Redfin $100 million to exit the rental advertising market for buildings with 25 units or more and transfer its multifamily housing promotion business to Zillow. In return, Redfin was to exclusively display Zillow's rental listings and stay out of the rental advertising market for up to nine years.

Prosecutors from New York, Arizona, Connecticut, Washington, and Virginia sued the companies in October 2025, alleging violations of federal antitrust laws. They argued the agreement harmed building managers and tenants through higher prices, fewer listings, and lower-quality services. The new settlement compels Redfin and Zillow to resume their previous competitive practices.

Under the terms of the agreement, Redfin must rebuild its apartment advertising business and offer its own advertising products. Both companies are also required to remove anti-competitive clauses from their original deal and are prohibited from entering into future anti-competitive agreements. New York Attorney General Letitia James stated that the online rental advertising platforms are crucial for New Yorkers seeking affordable housing, and the Zillow-Redfin agreement threatened to increase costs and hinder the search for homes.