FTC Sues Zillow and Redfin for Alleged Rental Ad Competition Stifling

FTC Lawsuit Against Zillow and Redfin

• 🏛️ The Federal Trade Commission (FTC) has filed a lawsuit against Zillow and Redfin.
• 🚫 The lawsuit alleges an unlawful agreement that eliminated Redfin as a competitor in the market for advertising rental homes on internet listing services (ILS).

Allegations of Anti-Competitive Practices

• 📊 Zillow and Redfin operate two of the largest rental ILS networks, including sites like Zillow Rentals, Rent.com, and Apartmentguide.com.
• 🤝 The complaint states that in February, Zillow and Redfin entered into an illegal agreement to dismantle Redfin as a competitor in the ILS advertising market for multifamily rental properties.
• 💰 This alleged agreement was reportedly made in exchange for a $100 million payment and other compensation from Zillow to Redfin.
• 📉 Zillow's stock dropped 4% following the announcement of the lawsuit.

Broader FTC Scrutiny of Rental Market

• 📈 This action follows previous FTC efforts, including a lawsuit against apartment landlords for allegedly using different motives to keep pricing at a certain level.
• 🔍 The FTC is examining both the payment and advertising sides of the rental market.