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The FTC challenged a February 2025 Zillow-Redfin agreement over online advertising for multifamily rentals, alleging that Zillow paid Redfin $100 million to stop competing independently in that market. On August 24, 2026, the parties filed a stipulated order requiring Redfin to rebuild a rental-advertising business. The order resolved the litigation without a trial or final decision on the allegations; it is not a court finding that either company violated antitrust law.
What the FTC challenged
The case concerns advertising for multifamily rental properties on internet listing services (ILSs)—websites consumers use to search for rental housing. It is not a purchase of homes or a general merger of Zillow and Redfin.
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The FTC sued Zillow Group, Inc., Zillow, Inc., and Redfin Corporation in the U.S. District Court for the Eastern District of Virginia. In its complaint, the agency alleged that the companies’ February 2025 agreement removed Redfin as an independent competitor in multifamily rental advertising. The FTC’s case page describes the case and its August 2026 order filing at Zillow Group/Redfin Corp.
What Zillow allegedly paid Redfin to do
According to the FTC’s complaint and release, Zillow paid Redfin $100 million in connection with the agreement. The agency alleged that Redfin agreed to:
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- End its advertising customer contracts and help transfer those customers to Zillow.
- Stop competing in multifamily rental advertising for up to nine years.
- Act as an exclusive syndicator of Zillow listings.
- Terminate hundreds of employees and help Zillow hire workers.
These are allegations in the complaint, not findings that the companies violated the law. The FTC argued that less competition could mean higher prices or worse terms for multifamily advertising customers, and weaker incentives to improve listing services and renters’ search experience. Those were predicted harms, not measured outcomes. The complaint is available from the FTC’s September 30, 2025 filing.
What the August 2026 stipulated order requires
The FTC announced on August 24, 2026, that the parties filed a stipulated order resolving the litigation. The FTC describes the order as lasting 10 years. Its principal requirements and commitments include:
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- Redfin must reenter rental ILS advertising: The order sets a six-month deadline after it is finalized. Redfin must operate a portal and billing system, hire a general manager, sales staff and customer support, and advertise the service.
- Zillow must continue listing syndication: Zillow must continue robust syndication of multifamily listings to Redfin, subject to the amended agreement.
- Some customers receive a limited contract option: For a specified nine-month period after Redfin meets the reentry requirements, certain customers may exit or renegotiate Zillow contracts without cost or penalty.
- Redfin made operating commitments: It committed to invest millions of dollars and operate the business for multiple years.
The order’s requirements do not establish that Redfin has already relaunched. The filing date alone also does not establish that the deadline has started: the reentry period runs after finalization, and current fulfillment or the start date of deadlines would require a subsequent docket or company update. Read the FTC’s August 24, 2026 announcement and the stipulated final order for the terms.
How the order changes the arrangement
| Issue | Original agreement, as alleged by the FTC | Stipulated order |
|---|---|---|
| Redfin’s role | The FTC alleged Redfin agreed to leave independent multifamily rental advertising for up to nine years and become an exclusive Zillow-listings syndicator. | Redfin must reenter rental ILS advertising within six months after finalization; independent advertising sales are permitted and required. |
| Customer choice | The FTC alleged Redfin would end its advertising customer contracts and help transfer those customers to Zillow. | Certain customers may exit or renegotiate Zillow contracts without cost or penalty for a specified nine-month period after Redfin meets reentry requirements. |
| Listings | The FTC alleged Redfin would exclusively syndicate Zillow listings. | Zillow must continue robust syndication to Redfin under amended terms, while Redfin may secure and advertise additional listings. |
| Duration and operation | The FTC alleged an exclusion from competition lasting up to nine years. | The order lasts 10 years and includes a six-month reentry deadline after finalization plus multi-year operating and investment commitments. |
| Legal status | The FTC’s complaint stated allegations and sought relief. | The parties stipulated to a resolution without a trial or final adjudication of factual or legal issues. |
Who brought the case, and what is its status?
The FTC was joined by Virginia, Arizona, Connecticut, New York and Washington. The agency says the related state and federal cases were consolidated in November 2025.
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The procedural language matters. The stipulated order says the case was settled without trial or final adjudication of any issue of fact or law; the defendants denied the allegations in the order. The FTC case page, last updated August 24, 2026, records the stipulated order filing but still lists the case status as “Pending.” Accordingly, the order should not be described as a court finding that the original agreement was unlawful or that either company was found guilty.
FTC Bureau of Competition Director Daniel Guarnera said, “This kind of payment to a competitor to exit a market and stop competing violates the antitrust laws.” That is the agency’s position, not an adjudicated finding.
What renters and landlords can—and cannot—conclude
The order is aimed at restoring Redfin as a potential independent advertising option and preserving Zillow listing syndication to Redfin under revised terms. It does not, by itself, show that rents, advertising prices, listing quality or renter outcomes have changed. The FTC’s stated concerns about price and service quality were predictions; the available order announcement does not report measured post-settlement effects.
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