Zillow and Redfin have reached a settlement with the U.S. Federal Trade Commission and five state attorneys general over a 2025 partnership alleged to have suppressed competition in the rental listings market. The deal resolves the legal challenge just as the lawsuit was set to begin trial on August 24, 2026. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
The issue stems from a deal made last year in which Redfin agreed to feature Zillow’s rental listings on its sites rather than competing against Zillow for rental advertisers. Under the agreement, Redfin, which owns major platforms Rent.com and ApartmentGuide.com, was effectively blocked from entering the rental advertising market independently for up to nine years. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
Allegations and Financial Arrangements
The FTC and the states of Arizona, Connecticut, New York, Virginia, and Washington contended that Zillow paid Redfin $100 million as part of the deal to disincentivize Redfin from competing. This payment was viewed as a mechanism potentially enabling Zillow to charge higher rates to property managers and degrade the selection and quality of rental listings available to renters. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
In Zillow’s and Redfin’s defense, the companies said their collaboration was meant to broaden the number of listings accessible to renters. But regulators saw it as a strategy that could limit competition and disadvantage consumers. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
Key Terms of the Settlement
As part of the settlement, Redfin will reenter the rental advertising market, free of prior restrictions that prevented it from soliciting property-management clients and selling ads. The order removes contractual barriers that had limited Redfin’s ability to compete independently. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
Importantly, while Redfin will still be allowed to display Zillow’s rental listings, the settlement revokes requirements for Redfin to share sensitive commercial information with Zillow. This allows Redfin to pursue new rental customers and clients, list its own properties, and sell its own advertising independently. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
This settlement echoes—but differs from—the recent Department of Justice resolution with Ticketmaster, which also addressed concerns over a powerful company allegedly suppressing competition. In that case, the DOJ teamed with 30 state attorneys general; 26 of those states pushed forward in court and won their case this past April. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
What this means: The agreement restores competitive opportunities in the rental listings marketplace. For Redfin, it lifts constraints that threatened its role as a participant in rental advertising, while for Zillow, regulatory pressure has forced a return to a more level competitive field. ([techcrunch.com](https://techcrunch.com/2026/08/24/zillow-and-redfin-settle-ftc-antitrust-case/))
