A PYMNTS Company

US Judge Allows FTC Antitrust Case Against Zillow and Redfin to Move Forward

By  |  May 11, 2026

A federal judge has refused to dismiss a lawsuit brought by the U.S. Federal Trade Commission against Zillow and Redfin, allowing the agency’s antitrust claims over online apartment rental listings to proceed.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    U.S. District Judge Anthony Trenga, based in Alexandria, Virginia, ruled Wednesday night that the FTC had plausibly alleged violations of federal antitrust law, according to Reuters. The case centers on claims that the two companies entered into an agreement designed to limit competition in the market for online apartment rental advertising.

    The FTC first filed its complaint in September, alleging that Zillow agreed to pay Redfin $100 million, along with monthly payments over a nine-year period, in exchange for Redfin ending contracts with its advertising customers and becoming the exclusive distributor of Zillow’s rental listings, per Reuters. The agency argued that the arrangement effectively turned Redfin into a platform mirroring Zillow’s rental listing services.

    Related: Redfin and Zillow Press Court to Dismiss FTC Antitrust Suit

    According to Reuters, the FTC said the agreement, reached in February 2025, could increase advertising costs for vacancies in multifamily rental properties while reducing both companies’ incentive to improve their platforms for renters.

    Redfin, which is owned by Rocket Companies, and Zillow had asked the court to dismiss the case, arguing that their partnership increased competition and created benefits for both renters and property managers.

    The companies said renters who preferred Redfin’s platform still had access to Zillow listings, while property managers benefited from having multiple listing services to reach prospective tenants. They also argued that the deal allowed Redfin to redirect resources from its struggling rental advertising business toward improvements in its platform, while helping Zillow compete more effectively for advertising spending.

    Zillow said in a statement on Thursday: “We remain confident we will demonstrate the pro-competitive and consumer benefits of our partnership with Redfin in court.”

    Redfin also defended the arrangement, saying it was confident it would prevail in court and that its partnership with Zillow “enabled us to invest more in rental-search innovations on Redfin.com, directly benefiting apartment seekers.”

    Source: Reuters