The Federal Trade Commission reached a settlement with Zillow Group Inc. and Redfin that would require Redfin to rebuild its rental-advertising business, resolving an antitrust fight over a $100 million agreement that regulators said removed a major competitor from the online apartment-listing market.
The settlement unwinds key restrictions in a 2025 arrangement under which Zillow paid Redfin $100 million to shut down its internet-listing services operation and remain out of that business for as long as nine years, according to The Wall Street Journal. The Journal reported that the order doesn’t include an admission of liability or wrongdoing by Zillow.
Under the proposed order, Redfin must restart its rental internet-listing advertising business within six months after the agreement is finalized and make substantial investments in rebuilding the operation, according to the FTC. The agency said Redfin has committed tens of millions of dollars over several years to the effort.
The resolution represents a significant intervention by federal and state antitrust authorities in the digital real-estate market, where online platforms compete both for renters searching for apartments and property managers paying to advertise available units.
The FTC sued Zillow and Redfin in September 2025, alleging that their agreement effectively dismantled Redfin as an independent competitor in advertising for multifamily rental properties. According to the agency’s complaint, Redfin agreed to terminate advertising relationships with customers, help transfer that business to Zillow and rely on Zillow-supplied listings on its own rental websites.
The Wall Street Journal reported that the settlement resolves the regulator’s contention that the companies had worked together in a way that reduced competition.
Related: FTC Antitrust Case Over Zillow–Redfin Rental Deal Advances Toward Trial
Five states — Arizona, Connecticut, New York, Virginia and Washington — brought similar antitrust claims and joined the proposed resolution. Their litigation was consolidated with the FTC case in November 2025, according to the commission.
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The settlement would remove restrictions preventing Redfin from independently selling rental advertising and displaying listings from its own customers. It would also eliminate provisions requiring Redfin to provide Zillow with certain nonpublic or competitively sensitive information, according to the FTC.
Redfin would be allowed to continue carrying Zillow listings while simultaneously competing for additional advertising customers. The company, which is owned by Rocket Companies Inc., said the resolution allows its rental relationship with Zillow to continue through at least 2030 while it develops an independent rental platform, according to The Wall Street Journal.
The settlement also contains measures designed to make Redfin’s return to the market viable. Zillow would be required to provide information allowing Redfin to recruit certain Zillow employees and waive restrictions that could prevent those workers from joining the rival business. For a limited period after Redfin relaunches its operation, some Zillow advertising customers would also receive greater flexibility to renegotiate contracts, the FTC said.
Regulators had argued that the original arrangement went beyond an ordinary distribution partnership. The FTC alleged that Zillow’s payment secured customer relationships, employees and business information from Redfin while preventing its rival from competing for multifamily advertising customers. The agency asserted that the arrangement violated the Sherman Act and amounted to an unlawful acquisition under the Clayton Act.
Zillow and Redfin had disputed those allegations. Zillow argued that the partnership expanded the availability of rental listings and strengthened competition against CoStar Group Inc., while Redfin said the arrangement allowed it to devote resources to improving the consumer rental-search experience, according to earlier reporting and court proceedings.
The companies suffered a legal setback in May when a federal judge declined to dismiss the FTC’s case, allowing the government’s antitrust claims to proceed.
The settlement now avoids a trial and puts the emphasis on restoring Redfin as a standalone competitor. The proposed order is set to remain in effect for 10 years, and Redfin could face financial penalties if it fails to meet its commitments to restart the business on schedule, according to the FTC. The companies would also have to notify the commission before entering certain future rental-listing agreements containing restrictions on competition.
The commission approved the stipulated order by a 2-0 vote and filed it in federal court in the Eastern District of Virginia. It will have the force of law once approved and signed by the judge, the FTC said.
Source: The Wall Street Journal
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