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FTC Sues to Block Zillow and Redfin Rental Partnership

By  |  October 1, 2025
Zillow

The U.S. Federal Trade Commission has filed a lawsuit to stop a deal that would make Zillow Group Inc. the exclusive provider of apartment rental listings for Rocket Companies Inc.’s Redfin, according to Bloomberg. The agency argued in a Virginia federal court filing that the agreement would reduce competition in the online rental marketplace, potentially driving up advertising costs for property owners while limiting options for renters.

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    The proposed partnership was first announced in February. Per Bloomberg, Zillow agreed to pay Redfin $100 million upfront to secure advertising rights and access to Redfin’s rental listings. The FTC said the arrangement effectively eliminates Redfin as an independent competitor in the market, consolidating power in what it described as an already concentrated industry. Daniel Guarnera, director of the FTC’s Bureau of Competition, warned that such deals violate antitrust laws because they diminish consumer choice.

    Shares of both companies fell following the lawsuit announcement, with Zillow down 4.7% and Rocket declining 4% as of mid-afternoon trading in New York, Bloomberg reported.

    The FTC’s complaint pointed to additional concerns beyond the payment, noting that Redfin had turned over commercially sensitive data to Zillow and laid off hundreds of employees, some of whom might later join Zillow. The agency also emphasized that while the deal is not a merger, it combines two of the largest rental-listing platforms, leaving fewer major players in the space. The regulator said it intends to seek divestiture of Zillow’s assets tied to the partnership.

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    Both companies defended the agreement. A Redfin spokesperson said the collaboration expanded rental options for users and allowed the company to cut costs while investing in new features. Zillow, meanwhile, described the deal as “pro-competitive and pro-consumer,” arguing it helps property managers reach more renters across multiple sites.

    This is not the first time the FTC has intervened in the sector. In 2020, the agency blocked CoStar Group’s attempt to buy the operator of Rent.com and ApartmentGuide.com. That business was later purchased by Redfin in 2021 before Rocket acquired Redfin earlier this year.

    The case comes amid heightened antitrust scrutiny of real estate practices. Bloomberg noted that the Justice Department and FTC have recently pursued actions against the National Association of Realtors and RealPage Inc. over alleged anti-competitive behavior, with large settlements and ongoing litigation reshaping the housing market.

    Source: Bloomberg