Arizona and 4 other states sue Zillow and Redfin
Attorney General Chris Mays announced the lawsuit, accusing both companies of working together to prevent competition in the rental market.
Fox – 10 Phoenix
Attorneys general from five states filed a joint lawsuit on October 1 against Zillow and Redfin for allegedly engaging in an illegal scheme to thwart competition in the online home rental market.
The lawsuit comes just a day after the Federal Trade Commission filed a similar lawsuit against a real estate company.
Officials in New York, Connecticut, Virginia, Arizona and Washington allege that under a February 2025 agreement between the two companies, Zillow paid Redfin “$100 million to close its apartment rental advertising business and transfer customers to Zillow.”
“This agreement is merely a final anti-competitive measure that removes Zillow from direct competition for benefits with Redfin for its multifamily advertising customers,” the complaint says. “Zillow and Redfin’s illegal agreement eliminates competition in violation of Section 1 of the Sherman Act. It is considered a takeover and is illegal under Section 7 of the Clayton Act.”
The lawsuit alleges that the companies violated federal antitrust laws through the deal. It also says that maintaining the agreement would harm both rental advertisers and consumers.
Redfin also claims it laid off hundreds of employees as part of the deal and helped Zillow hire some of them.
“Zillow’s efforts to exclude competitors could drive up costs for advertisers and leave renters with fewer options when looking for a new apartment,” New York Attorney General Letitia James said in a press release announcing the lawsuit.
The lawsuit seeks a judgment finding the Zillow and Redfin agreement a violation of federal antitrust law, an injunction prohibiting both companies from engaging in this illegal activity, and a proposal to “sell assets or restructure the business to restore competition.”
Both Zillow and Redfin filed the same statement in response to the new FTC application and the previous lawsuit.
“Redfin strongly disputes the FTC’s allegations and is confident they will be vindicated in court. Through our partnership with Zillow, Redfin.com visitors have access to more rental properties and our advertising customers have access to more renters,” a Redfin spokesperson said in an email statement to NorthJersey.com, part of the USA TODAY Network. “By the end of 2024, it was clear that the number of existing Redfin advertising customers could no longer justify the cost of maintaining a rental sales force. Partnering with Zillow reduced those costs and allowed us to further invest in rental search innovation on Redfin.com, directly benefiting apartment seekers.”
A Zillow spokesperson said in an email statement that the company’s partnership with Redfin “is pro-competitive and pro-consumer by connecting property managers to more motivated renters, filling vacancies and bringing more renters home.”
Maddie McGay is a real estate reporter for NorthJersey.com and The Record, covering everything that’s worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay or X @maddiemcgayy and sign up for the North Jersey Living newsletter. Have a tip, trend, or great home she should know about? Email MMcGay@gannett.com.
