Zillow and Redfin settled an antitrust case with the Federal Trade Commission and five states Monday, just as a trial was set to begin, agreeing to undo part of a $100 million partnership that the government said effectively paid Redfin to stop competing in apartment rental advertising.
The companies, both based in Seattle, have been rivals in online real estate and related services for the better part of two decades, expanding into rentals to build their businesses beyond the market for single-family homes. The FTC alleged the deal combined two of the three largest online apartment listing services against one main competitor, CoStar’s Apartments.com.
The proposed settlement requires Redfin, now owned by Rocket Cos., to relaunch its apartment advertising operation within six months — hiring a general manager, a sales force and a trained customer support team, while committing to spend millions of dollars to grow the business.
Redfin faces fines if it misses deadlines, and must report regularly to the FTC on its progress.
Zillow’s apartment listings will still appear on Redfin.com, Rent.com and ApartmentGuide, and Redfin will keep syndicating them, so Zillow is holding onto the audience it gained in the 2025 deal. The companies say the syndication will run through at least 2030.
What ends is the exclusive nature of the partnership: As part of the FTC settlement, Redfin is no longer barred from selling its own advertising alongside those listings, or from doing business on its own with the property managers shifted to Zillow under their original deal.
Zillow also must help Redfin rebuild. Under the order, which runs 10 years, Zillow is required to give Redfin employee information so it can recruit Zillow workers, waive any noncompete or anti-poaching agreements blocking those hires, and let apartment advertisers locked into Zillow contracts renegotiate without penalty for nine months after Redfin relaunches.
The companies will also pay the states $2 million in costs and fees, according to Washington Attorney General Nick Brown, who co-led the five-state coalition.
Zillow said the partnership “will continue unchanged,” and framed the standalone advertising products both companies plan to launch in 2027 as added flexibility for property managers.
“This resolution is a win for renters and multifamily housing providers,” said Michael Sherman, general manager and senior vice president of Zillow Rentals, in a statement. He said the partnership has brought “more leads and leases to property managers and more options to renters,” and that the standalone products will let Zillow “do even more to support the marketplace.”
The FTC offered its own take: “Today’s settlement unwinds an agreement under which Zillow paid Redfin $100 million to stop competing and hand off all its customers to Zillow,” said Daniel Guarnera, director of the FTC’s Bureau of Competition. “This kind of payment to a competitor to exit a market and stop competing violates the antitrust laws.”
FTC Chairman Andrew Ferguson called it “a complete victory for the American people” in a thread on X early Monday. He added, “This anticompetitive agreement is now history under our proposed settlement.”
Guarnera said the settlement “delivers better, quicker, more certain results” than the agency would have been able to achieve if it had gone to trial and prevailed.
“Today’s settlement will restore competition by paving the way for Redfin to re-enter the market as a stronger competitor,” Brown said in a statement. “Most importantly, consumers will have more choices and won’t be subjected to illegally manipulated prices.”
The FTC and state cases were consolidated last year. Zillow and Redfin moved to dismiss in January, and U.S. District Judge Anthony Trenga denied that motion in May, according to Real Estate News. However, the FTC’s case had met resistance in July, when Trenga denied its request to declare the deal presumptively unlawful, finding genuine disputes of material fact.
Redfin called the outcome “a significant win for Redfin and consumers across the country.”
“This agreement allows us to maintain our rental partnership with Zillow through at least 2030, while building and investing in a standalone rentals business of our own,” a spokesperson said, adding that renters “will continue to have access to the rental inventory they rely on today.”
The proposed settlement, announced Monday morning, requires court approval.
Updated with details from Washington AG Nick Brown.