FTC Sues Zillow & Redfin, Alleging Pact to Suppress Competition

The FTC sued Zillow and Redfin, alleging a February deal between the two companies “stunts multifamily rental advertising competition, harming American renters and property managers.”

• Complaint alleges Redfin agreed to end its contracts with advertising customers, to stop competing in the multifamily market for nine years and to serve as a syndicator of Zillow listings, in exchange for a $100 million payment
• FTC complaint seeks to stop Zillow and Redfin from continuing their deal and “contemplates a potential divestiture of assets or the reconstruction of businesses to restore competition”
• ZG is down about 5%; Redfin owner Rocket is down about ...