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Attorneys General from Five States Sue Zillow and Redfin Over Alleged Antitrust Violations

By  |  October 1, 2025

Attorneys general from New York, Arizona, Connecticut, Washington and Virginia filed a lawsuit Wednesday against Zillow and Redfin, accusing the companies of conspiring to stifle competition in the online rental housing market. The action follows a similar lawsuit brought by the Federal Trade Commission a day earlier, according to CNBC.

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    The states’ complaint centers on a February agreement in which Zillow reportedly paid Redfin $100 million to end its apartment rental advertising business and transfer clients to Zillow. New York Attorney General Letitia James’ office said the move effectively cut off competition, leaving fewer choices for advertisers and renters alike.

    “This agreement is nothing more than an end run around competition,” the lawsuit states, alleging that the deal violated federal antitrust laws. It further claims that Redfin laid off hundreds of employees before collaborating with Zillow to rehire some of them.

    Per CNBC, officials argue that the agreement could lead to higher advertising costs and fewer options for renters. James emphasized that millions of people rely on online platforms for housing searches, and limiting competition could harm those seeking affordable housing.

    The complaint notes that Zillow, Redfin and CoStar — the owner of Apartments.com — collectively control about 85% of the rental listings market. The states are seeking an injunction to prevent the alleged scheme and suggested that restructuring may be necessary to restore competition.

    Read more: FTC Sues to Block Zillow and Redfin Rental Partnership

    Redfin pushed back strongly against the allegations. “Redfin strongly disagrees with the allegations and is confident we will be vindicated by a court of law,” a spokesperson said, adding that its partnership with Zillow expanded listing access and cut operational costs. Zillow also defended the deal, stating that the collaboration is “pro-competitive and pro-consumer,” according to CNBC.

    The lawsuit comes on the heels of the FTC’s complaint, which raised similar concerns about reduced competition. Shares of both Zillow and Redfin’s parent company, Rocket Companies, initially dipped following the twin legal actions.

    Both companies have maintained that their partnership enhances the rental search process for consumers, but regulators contend it crosses the line into unlawful market consolidation. The cases could set the stage for a significant battle over how competition in the online rental marketplace is defined and preserved.

    Source: CNBC