Zillow and Redfin have reached a settlement with the Federal Trade Commission (FTC) and five states, ending a legal dispute over a 2025 partnership that the FTC claimed harmed competition in the rental-listing market. The settlement was announced on Monday, just as the case was due to go to trial.
The case centred on an agreement in which Redfin agreed to display Zillow’s rental listings rather than compete directly for rental advertisers. The FTC and attorneys general from Arizona, Connecticut, New York, Virginia and Washington alleged that Zillow paid Redfin $100 million to keep it from competing.
Under the proposed settlement, Redfin will be required to reenter the rental advertising business. The order also removes restrictions that limited Redfin’s ability to compete independently for property-management customers. Redfin can continue displaying Zillow’s listings but will again be able to sell advertising and pursue its own rental customers without sharing sensitive business information with Zillow.