Federal agency alleges $100 million deal unlawfully reduced competition in online rental listings market.
The Federal Trade Commission (FTC) has recently filed an antitrust lawsuit against Zillow Group, Inc. and Redfin Corporation, alleging the two companies made an unlawful agreement to eliminate competition in the market for online rental advertising. The FTC stated that Zillow paid Redfin $100 million earlier this year in exchange for ending its contracts with advertisers, halting competition in multifamily rental advertising for up to nine years, and becoming an exclusive distributor of Zillow listings.
The agency asserts this deal, presented publicly as a “partnership,” effectively dismantled Redfin’s role as an independent competitor and violated federal antitrust laws under Section 7 of the Clayton Act. According to the complaint, the agreement likely increased advertising costs for property managers and reduced innovation and user experience for renters searching online.
“Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” said Director Daniel Guarnera of the FTC’s Bureau of Competition. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market—one that’s critical for renters, property managers, and the health of the overall U.S. housing market.”
As the Lord Leads, Pray with Us…
- For Chairman Ferguson and members of the Federal Trade Commission as they seek to ensure competition and prevent monopolization in the U.S. marketplace.
- For Director Guarnera to be discerning as he heads the FTC’s Office of Competition.
Sources: Federal Trade Commission
