The U.S. Federal Trade Commission and a coalition of states have finalized a settlement resolving antitrust claims against Zillow Group and Redfin, stemming from a 2025 agreement that regulators argued suppressed competition in apartment rental listings.
Under the terms, Redfin will pay Zillow $100 million to resolve the litigation, while agreeing to rebuild its rental advertising business within six months. The settlement also permits Redfin to maintain its partnership with Zillow through at least 2030, despite earlier commitments to exit the rental listing market for up to nine years.
The case, filed in Virginia and joined by Arizona, Connecticut, New York, and Washington, alleged that Zillow’s $100 million payment to Redfin in February 2025 was designed to eliminate competition in listings for buildings with more than 25 units. Regulators claimed the arrangement drove up costs for landlords and reduced listing quality for renters, estimating a 14.5% average increase in prices paid by Zillow customers after Redfin’s withdrawal.
Zillow has denied the allegations, asserting that the deal expanded access to listings across platforms and helped compete with market leader CoStar Group. The company also noted that exclusive partnerships are standard industry practice.
The settlement, which concludes claims without admitting liability, follows a scheduled trial originally set for August 2026. Redfin’s obligation to revive its rental business marks a reversal of its prior exit from the sector, while the ongoing Zillow partnership provides a path to scale its standalone rentals operations.
