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FTC Sues Zillow and Redfin Over Alleged $100M Deal to Kill Competition

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The FTC has sued Zillow and Redfin for allegedly stifling competition in rental ads. The news sent their stocks down 4.5% and 3.8%, respectively.

FTC Sues Zillow and Redfin Over Alleged $100M Deal to Kill Competition

The Federal Trade Commission (FTC) has filed an antitrust lawsuit against Zillow (ZG) and Rocket Companies’ (RKT) subsidiary, Redfin. The regulator has alleged that the two real estate platforms entered into an unlawful agreement to suppress competition in the online rental housing advertising market. In response to the lawsuit, shares of Zillow dropped 4.5%, and Rocket Companies fell 3.8%.

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Details of the FTC Complaint

The FTC’s complaint centers around a $100 million agreement between the companies, signed in February 2025, that allegedly gave Zillow exclusive control over multifamily rental listings on Redfin’s platforms.

According to the FTC, Zillow paid Redfin to end its existing contracts with advertising customers and stop competing in the advertising market for multifamily properties for up to nine years. Also, the regulator believes that Redfin agreed to only show Zillow’s rental listings on its platforms.

The FTC noted that Zillow and Redfin operate two of the largest networks of rental internet listing services. As a result, the agency argues that renters and property managers could face higher prices, fewer options, and worse service.

The lawsuit also alleges that Redfin laid off hundreds of employees after the deal, some of whom were then hired by Zillow.

Is Zillow a Good Stock to Buy Right Now?

On TipRanks, ZG stock has received a Moderate Buy consensus rating, with 14 Buys, nine Holds, and one Sell assigned in the last three months. The average Zillow stock price target is $90.14, suggesting an upside potential of 21.09% from the current level.

See more ZG analyst ratings

Is RKT Stock a Good Buy?

Wall Street has a Hold consensus rating on Rocket Companies’ stock based on seven Hold recommendations. The average RKT stock price target of $13.83 implies 28.64% downside risk.

See more RKT analyst ratings

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