Redfin and Zillow Press Court to Dismiss FTC Antitrust Suit

The two companies submitted their latest filing late last week, arguing that regulators’ opposition to their motion is unfounded. In the court document, the companies describe the plaintiffs’ arguments as “meritless” and contend that the claim their partnership harms consumers “undermines the very purpose of antitrust laws,” according to a statement in the filing. The companies maintain that consumers “benefit from increased listings from the partnership,” per a statement included in their reply.

The lawsuit, initially filed as two separate cases in late September 2025 and later consolidated in November, centers on a multifamily rental syndication agreement between the two real estate platforms. Regulators allege the arrangement effectively amounted to Zillow paying Redfin $100 million to exit competition in the multifamily rental listings market. Redfin and Zillow moved to dismiss the consolidated complaint in mid-January, and a hearing on the motion is scheduled for Feb. 25.

In their most recent filing, the companies argue that regulators have taken an incomplete view of the marketplace. According to a statement in the reply brief, the plaintiffs’ complaint focuses largely on how the agreement might affect property managers and landlords, while overlooking the platforms’ role in serving renters. Redfin and Zillow assert that both consumers and property managers are core users of their services and that the alleged harms fail to account for potential benefits to renters.

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Related: Judge Consolidates Antitrust Lawsuits Targeting Zillow-Redfin Rental Deal

The defendants also challenge the regulators’ assertion that there is a nationwide market for paid internet listing service advertising. Per a statement in their filing, the companies argue that rental advertising operates on a local basis, with property managers targeting specific cities rather than a single national market. They further contend that the complaint ignores alternative advertising channels available to landlords, including social media platforms and other online listing services.

Another key point raised by Redfin and Zillow concerns market power. The companies argue that regulators have not demonstrated that the two firms possess sufficient dominance to raise prices or control the relevant market. According to a statement in the filing, the complaint does not provide detailed market share data or establish that the combined companies dominate rental advertising. Without such evidence, the defendants assert, the lawsuit relies on speculation about potential future harm rather than proof of actual anticompetitive effects.

As the court considers the motion to dismiss, both sides have continued with discovery. In a joint status update filed Monday, the parties indicated they are working to meet court-ordered deadlines. According to a statement in that update, Zillow has produced approximately 240,000 custodial documents and 1,100 noncustodial documents, while Redfin has produced about 91,000 custodial and 500 noncustodial documents. The companies also reported that they are coordinating schedules for defendant depositions.

The status report follows a recent court ruling resolving a discovery dispute between the parties. Earlier this month, the court ordered the production of a range of internal and external communications and documents, as well as declarations from several executives, including Rich Barton, Lloyd Frink and Zillow CEO Jeremy Waksman.

The outcome of the Feb. 25 hearing could determine whether the case proceeds to further litigation or is dismissed at this early stage, as both sides continue to prepare their arguments.

Source: Housing Wire