Zillow, Redfin ink last-minute antitrust settlement over FTC claims

The FTC announced a settlement Monday resolving its antitrust suit against Zillow and Redfin, filed alongside five states, over a 2025 arrangement in which Zillow reportedly paid Redfin $100 million to exit the multifamily rental advertising market and funnel its business to Zillow for up to nine years. The deal, struck the day trial was set to begin, requires Redfin to relaunch its own rental advertising business within six months of court approval and removes restrictions on Redfin competing with Zillow.

The FTC says the original arrangement led Redfin, owned by Rocket Companies, to lay off 450 employees, with Zillow allegedly helping recruit its preferred candidates from among those let go; the new order requires Zillow to share employee information so Redfin can interview them and to waive noncompete restrictions. Zillow must also let customers cancel or renegotiate contracts without penalty once Redfin's business restarts.

Both companies' executives called the settlement a win for consumers, with Zillow's Michael Sherman describing the very syndication partnership under FTC scrutiny as having already delivered 'pro-consumer and pro-competitive benefits.' The order still needs approval from U.S. District Judge Anthony Trenga and would remain in effect from 2027 through 2037.

The full dispatch is available from the source below.