Zillow and Redfin reached a settlement with the U.S. Federal Trade Commission (FTC) and five state attorneys general, ending a legal dispute over a partnership announced in 2025. The settlement was announced Monday, before the trial that was scheduled to hear the case that same day was set to begin.
The case concerned an agreement under which Redfin agreed to display Zillow’s rental listings on its websites instead of competing directly with Zillow for advertisers in that market. The deal could have kept Redfin out of the rental advertising business for up to nine years. Redfin owns Rent.com and ApartmentGuide.com, two major rental listing platforms.
The FTC and the attorneys general of Arizona, Connecticut, New York, Virginia and Washington said Zillow agreed to pay Redfin $100 million to keep it out of competition. The companies defended the partnership as a way to give renters access to a larger pool of listings, but authorities argued that a dominant company paying one of its largest competitors to stop competing could lead to higher prices and less favorable terms for property managers, in addition to potentially reducing the quality of listings available to consumers.
What does the settlement require?
Under the proposed settlement, Redfin will be required to return to the rental advertising business. The order also removes restrictions that limited its ability to compete independently with Zillow for property-management customers.
The settlement does not end the commercial relationship entirely. Redfin will be able to continue displaying Zillow listings, while also regaining the right to sell advertising, display listings provided by its customers, and attract new customers in the rental market. It will also be able to compete without being required to share sensitive commercial information with Zillow.
Why does this matter?
The case shows that regulators are focusing not only on traditional acquisitions but also on partnerships that may alter competitive incentives among digital platforms. Even while Zillow listings remain available on Redfin, the settlement seeks to remove the agreement’s most important practical provision: preventing Redfin from independently pursuing advertisers and property managers.
For companies operating in digital markets, the case is a reminder that content- or listing-distribution agreements may raise antitrust concerns when paired with restrictions on a major competitor’s ability to sell or attract customers. The actual effect on prices and listing quality will depend on how Redfin implements its return to the market and how advertisers and property managers respond—matters that the settlement alone does not establish.
The Zillow and Redfin case comes months after the U.S. Department of Justice settled with Ticketmaster in another case in which a dominant company was accused of using its power to limit competition. However, 26 of the 30 state attorneys general who had filed a separate lawsuit with the Justice Department against Live Nation chose to continue the case, and they won it in April.