Zillow settles antitrust lawsuit with the FTC

The Federal Trade Commission has settled its antitrust lawsuit against Zillow, resolving accusations that the online real estate platform paid its rival Redfin $100 million to stop competing in the apartment rental listings market. As part of the agreement, Redfin must reenter the internet listing service (ILS) market for apartment rentals and relaunch with significantly more listings than it previously offered, according to an FTC press release. The FTC stated that restoring competition in the ILS market is expected to lower costs and encourage innovation that benefits renters and property management companies.

The settlement also requires Zillow to provide Redfin with employee information to allow for recruitment of staff, and Zillow must offer its customers the ability to renegotiate their contracts without any extra cost or penalty. These terms go beyond Redfin simply restarting its marketing efforts for apartment listings, addressing both the competitive structure of the market and the terms offered to consumers.

The FTC’s original lawsuit, filed in September 2025, accused Zillow of offering Redfin $100 million to halt its ILS advertising for up to nine years, effectively buying off a competitor. That case was joined by a similar lawsuit filed jointly by Arizona, Connecticut, New York, Virginia, and Washington state, and the two actions were merged in November of the same year. The settlement now reverses the agreement that had shut down Redfin’s ILS for apartment rentals.

For U.S. renters and property management companies, the resolution aims to restore a competitive marketplace for online apartment listings, which had been reduced by the alleged buyout. The FTC’s action underscores federal and state scrutiny of anti-competitive practices in the digital real estate sector, a market with significant consumer impact across the country. The settlement does not include an admission of wrongdoing from Zillow, but the company has agreed to the terms set forth by the commission.

As part of the deal, Redfin is expected to relaunch its ILS with a substantially larger inventory of listings, though the FTC did not specify exact numbers. The employee information provision allows Redfin to pursue hiring from Zillow’s workforce, potentially strengthening its operations as it reenters the market. On the consumer side, the contract renegotiation option gives Zillow customers flexibility without financial penalty, a change that could affect thousands of U.S. users.

The case highlights the legal limits on dominant platforms using payouts to neutralize competitors, particularly in markets where consumers rely on multiple services for housing searches. With state and federal regulators aligned, the settlement sets a precedent for how similar cases might be handled in the technology and real estate industries. The practical effects for renters will depend on how quickly Redfin can rebuild its platform and whether Zillow’s compliance with the recruitment and contract terms holds.

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