Zillow settles FTC claims it paid Redfin to stop competing on apartment listings

Zillow has denied the arrangement is anticompetitive and said the deal benefits everyone, as it makes more listings available on more sites.

A Redfin spokesperson said the settlement allows the company to maintain its partnership with Zillow through at least 2030 while building its own standalone rentals business.

A spokesperson for Zillow did not immediately respond to a request for comment.

The case was scheduled to go to trial before a federal judge in Alexandria, Virginia, on Monday. Virginia, Arizona, Connecticut, New York and Washington brought the case alongside the FTC.

Zillow and Redfin made a deal in February 2025: Redfin would wind down its rental listing business, refer its customers to Zillow, and display copies of Zillow's listings on its site. Redfin agreed to stay out of the business for up to nine years.

In return, Zillow agreed to pay Redfin $100 million, plus fees for each renter who signaled interest in a property.

The FTC and states said that before the deal, Zillow and Redfin were competing to list vacancies in buildings with more than 25 units.

After Redfin stopped competing, Zillow customers paid an average of 14.5% more per listing, an expert for the FTC and states estimated, while some property managers stopped using online listing sites altogether.

Zillow had said in court papers that the deal led to renters seeing more listings on both sites and helped it compete with market leader CoStar Group. Exclusive deals are common in the industry, Zillow said.