The Federal Trade Commission (FTC), supported by five states, has announced a stipulated order to resolve its litigation against Zillow and Redfin, which had raised significant antitrust concerns. This order aims to restore competition in the online platforms used by renters and property managers for apartment listings.

At the heart of the issue was a 2025 agreement where Zillow paid Redfin $100 million to cease its internet listing services (ILS) business, effectively eliminating competition in the market. The settlement requires Redfin to re-enter the ILS market with a commitment to significantly increase its apartment listings and invest millions to enhance its competitive position.

FTC Director Daniel Guarnera emphasized that the original agreement violated antitrust laws by paying a competitor to exit the market. The settlement is expected to benefit renters and property management companies by driving down costs and fostering innovation in the ILS market.

The FTC's complaint, filed in September, accused Zillow and Redfin of creating an illegal agreement that undermined competition in the ILS advertising market for multifamily rental properties. The proposed order, effective for 10 years, mandates the removal of anticompetitive provisions and requires Redfin to restart its ILS business within six months.

Additionally, the order includes provisions to facilitate Redfin's growth, such as allowing it to syndicate Zillow's listings without restrictions and providing support for recruiting Zillow employees. Zillow is also required to notify ILS customers about contract flexibility to encourage them to engage with Redfin once it relaunches its advertising business.

Failure to comply with the commitments outlined in the order could result in monetary penalties for Redfin, and both companies must keep the FTC updated on their compliance. The proposed order has been filed in the U.S. District Court for the Eastern District of Virginia and awaits judicial approval.