Zillow and Redfin Settle FTC Antitrust Lawsuit for 2 Million Dollars

Online real estate companies Zillow and Redfin agreed on August 24, 2026, to pay $2 million and terminate a non-compete agreement following a federal antitrust lawsuit brought by the Federal Trade Commission and five state attorneys general.

Regulators alleged that the two rival apartment-listing portals entered an illegal deal in February 2025, where Zillow paid Redfin $100 million to stop advertising apartments in buildings with 25 or more units. Under the arrangement, Redfin agreed to exit the multifamily market for up to nine years and exclusively display Zillow's apartment listings on its platform.

The FTC and attorneys general from Arizona, Connecticut, New York, Virginia, and Washington filed the lawsuit eight months after the initial deal. Officials stated the illegal scheme harmed property managers and renters through inflated prices, diminished service quality, and restricted listing options.

Under the terms of the settlement, Redfin must rebuild its independent apartment advertising business and resume listing its own apartment units alongside syndicated Zillow offerings. The settlement also prohibits both platforms from entering into similar market-allocation deals in the future.

Federal regulators emphasized that resolving the case directly restores market mechanics rapidly for consumers and housing providers.

"Delivers better, quicker, more certain results for both renters and property management companies than we would have been able to achieve after prevailing at trial," said Daniel Guarnera, director of the FTC’s Bureau of Competition.

State enforcement officials highlighted that the settlement eliminates a backroom arrangement designed to suppress competition among major listing platforms.

"Arizona renters deserve a competitive market, not a backroom deal that lets two of the biggest players in online apartment listings agree to stop competing with each other," said Kris Mayes, Arizona Attorney General.

Mayes added that the enforcement action holds the platforms accountable for harming both consumers and property operators.

"Zillow paid Redfin $100 million to walk away from the marketplace in a scheme to rig the market at the expense of Arizona families searching for a place to live and the property owners trying to reach them. This settlement forces both companies back into real competition," said Mayes.

The agreement joins several recent government settlements in high-profile antitrust enforcement actions against major corporate entities.