Home / Business and Economy / Antitrust Fight: Zillow, Redfin Rental Deal Merged
Antitrust Fight: Zillow, Redfin Rental Deal Merged
6 Dec
Summary
- Two antitrust lawsuits against Zillow and Redfin have been combined.
- The lawsuits challenge a deal where Zillow paid Redfin $100 million.
- Regulators allege the deal allows Zillow to dominate online rental ads.
A significant legal battle unfolds as two antitrust lawsuits against Zillow and Redfin are now combined. U.S. District Court Judge Anthony Trenga ordered the consolidation on November 26, focusing on a partnership established in February. Under this agreement, Zillow paid Redfin $100 million to cease operations in the rental listing market.
The Federal Trade Commission, along with attorneys general from five states, filed separate lawsuits alleging the companies conspired to eliminate competition. These actions claim the deal violates federal antitrust laws, specifically citing the Sherman Act and Clayton Act for unlawful agreements to reduce competition and unlawful acquisition.
Zillow has consented to the consolidation, stating it looks forward to demonstrating how the listing syndication benefits renters and property managers. However, regulators argue this move harms property operators and renters by potentially increasing prices and reducing incentives for Zillow and Redfin to compete, thereby solidifying Zillow's dominance in online rental advertising.
