Ftc Sues Zillow And Accuses It Of Buying Off Rival Redfin

The Federal Trade Commission (FTC) is suing home-search website Zillow, alleging that it paid rival Redfin $100 cardinal to destruct title successful nan online listing business. The suit refers to a woody inked backmost successful February betwixt nan 2 companies successful which Redfin allegedly agreed to go "an exclusive syndicator of Zillow listings."

The allegations propose that Redfin began copying complete listings from Zillow alternatively of creating its ain listings, which gave Zillow overmuch much power complete nan space. The suit besides accuses Redfin of agreeing to extremity contracts pinch advertizing customers successful an alleged effort to cede much crushed to Zillow.

The FTC went connected to propose that this anti-competitive believe would lead to higher prices and worsening position for some renters and advertisers. “This statement is thing much than an extremity tally astir title that insulates Zillow from head-to-head title connected nan merits pinch Redfin for customers advertizing multifamily buildings,” nan suit said.

Zillow released a connection connected nan suit, which was published by CNN. The connection called nan erstwhile woody pinch Redfin “pro-competitive and pro-consumer" and noted that “our listing syndication pinch Redfin benefits some renters and spot managers and has expanded renters’ entree to multifamily listings crossed aggregate platforms."

Redfin besides disagrees pinch nan allegations from nan FTC, saying that "by nan extremity of 2024, it was clear that nan existing number of Redfin advertizing customers couldn’t warrant nan costs of maintaining our rentals income force." The institution went connected to propose that "partnering pinch Zillow trim those costs and enabled america to put much successful rental-search innovations connected Redfin, straight benefiting flat seekers."

The FTC further alleges that Redfin laid disconnected hundreds of workers arsenic portion of nan deal, going connected to thief Zillow prosecute immoderate of these employees. Basically, nan agency is accusing Zillow of acquiring a ample portion of Redfin’s business, each while hiding down nan thought of a business to debar scrutiny. The FTC has asked nan tribunal to extremity nan statement and see a divestiture of assets.

This isn't nan only existent ineligible conflict that Zillow finds itself in. A existent property brokerage institution called Compass issued its ain lawsuit backmost successful June, accusing Zillow of engaging successful anticompetitive practices.