Zillow Group Inc. and Rocket Companies Inc.'s Redfin will proceed to trial next month in the US Federal Trade Commission's challenge to their apartment-listing partnership. US District Judge Anthony Trenga denied the FTC's request to block the partnership immediately, stating that too many disputes exist to decide the case before the August 24 trial, which is expected to last two weeks.
The FTC's lawsuit, filed in September 2025, alleges that Zillow and Redfin entered an unlawful agreement in February 2025 to eliminate Redfin as a competitor in the multifamily rental advertising market. The complaint claims that Zillow made a $100 million payment, along with other compensation, to Redfin. In exchange, Redfin allegedly agreed to terminate contracts with advertising customers, help Zillow acquire that business, and stop competing in the multifamily advertising market for up to nine years, effectively becoming an exclusive syndicator of Zillow listings. This arrangement, according to the FTC, makes Redfin's sites a mere copy of Zillow's and constitutes an unlawful acquisition under Section 7 of the Clayton Act.
The FTC argues that this agreement destroys competition, harming both property managers who seek to advertise properties and renters searching for homes. The agency anticipates the deal will likely lead to higher prices and worse terms for multifamily unit advertising, and reduce incentives for Zillow and Redfin to compete for renters through innovation and attracting visitors. The complaint seeks to halt the unlawful agreement and may involve asset divestiture or business reconstruction to restore competition.
Five state attorneys general from Arizona, Connecticut, New York, Virginia, and Washington filed a similar lawsuit in October 2025, which Judge Trenga combined with the FTC's case in November 2025. In May 2026, Judge Trenga had already denied Zillow and Redfin's motion to dismiss the lawsuit, ruling that the FTC plausibly alleged antitrust violations. Despite the companies' arguments that their partnership benefits consumers by offering more listings and streamlining operations, the judge found the allegations of anti-competitive conduct strong enough to proceed to trial.
