The suit says the companies conspired to limit competition, costing renters and landlords more
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States say a $100 million pact shut down head-to-head competition in multifamily rental advertising.
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Coalition argues renters will face fewer choices and landlords higher prices after Redfins exit.
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Lawsuit seeks to unwind the agreements, block future coordination, and restore competition.
A bipartisan group of state attorneys general is suing Zillow and Redfin, alleging the rivals struck an illegal arrangement to stop competing in the online market for apartment rental advertisinghurting both renters and landlords. The complaint centers on a pair of agreements the companies signed on February 6, 2025, under which Zillow paid Redfin $100 million and Redfin shut down its multifamily rental ad business and sent those clients to Zillow.
The states' action follows a similar complaint filed by the Federal Trade Commission.
What the states allege
According to the lawsuit, Zillow and Redfinwhose portfolio includes Rent.comwere two of the three dominant players in online apartment advertising, alongside CoStars Apartments.com. Together, the three controlled about 85% of market revenue. For years, the complaint says, Zillow and Redfin battled to win property managers ad budgets and to attract renters with better features and user experience.
That competition allegedly ended when the companies executed what the states call an unlawful scheme through a Partnership Agreement and a Content License Agreement. The coalition argues the arrangement violates federal antitrust laws by removing a major rival and dulling incentives to improve service quality and pricing.
How the deal worked, per the complaint
Under the Partnership Agreement, Zillow paid $100 million for Redfin to exit advertising for buildings with 25+ units and to transfer Redfins multifamily clients to Zillow, a direct competitor. Under the Content License Agreement, Redfin allegedly agreed to stay out of multifamily advertising for up to nine years and to display only the apartment listings also shown on Zillows sites. The complaint says the pact, while initially limited to larger buildings, envisions extending to all apartment buildings.
As a result, the filing says, about 450 Redfin employees tied to its multifamily rental ad business were terminated.
New York Attorney General Letitia Jameswho leads the coalition with Arizona, Connecticut, Washington and Virginiasaid millions of renters depend on online listings to find an affordable, safe place to live. The AGs contend the deal will raise advertising prices for property managers and reduce choice and innovation for renters by consolidating a market already highly concentrated. They also argue the referral payments from Redfin to Zillow blunt Redfins incentive to compete for traffic by improving its user experience.
What the AGs want the court to do
The lawsuit seeks a ruling that the agreements violate federal antitrust laws, along with an injunction barring Zillow and Redfin from continuing the alleged coordination. The states also ask the court to consider divestitures or other structural remedies necessary to restore competition in the market.
What happens next
If the court grants an injunction, Redfin could be required to rebuild multifamily advertising capabilities or Zillow could be required to divest assets acquired through the deal. The case also raises broader questions about data-sharing and listing syndication in real-estate marketplaces where a few platforms control most traffic.
Posted: 2025-10-02 02:33:55
