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CNBC
CNBC
1M ago 42 views

States sue Zillow, Redfin for alleged antitrust violation in online rental housing

Five state attorneys general have filed a lawsuit against Zillow and Redfin, alleging anti-competitive practices in the online housing rental market.
States sue Zillow, Redfin for alleged antitrust violation in online rental housing
A What happened
A coalition of attorneys general from five states—New York, Virginia, Arizona, Connecticut, and Washington—has filed a lawsuit against Zillow and Redfin, accusing them of colluding to stifle competition in the online housing rental market. The lawsuit follows a recent complaint from the Federal Trade Commission (FTC) and centers on a February agreement where Zillow paid Redfin $100 million to cease its apartment rental advertising business. This arrangement is claimed to violate federal antitrust laws, potentially harming renters by reducing options and increasing costs. The AGs are seeking an injunction to prevent further anti-competitive behavior and may propose restructuring the companies to foster competition. Both Zillow and Redfin have publicly rejected the allegations, asserting that their partnership is beneficial for consumers and enhances access to rental listings.

Key insights

  • 1

    Allegations of Anti-Competitive Behavior

    The lawsuit claims Zillow and Redfin conspired to limit competition in the rental market.

  • 2

    Impact on Renters

    The AGs argue that the agreement could harm renters by reducing options and increasing costs.

  • 3

    Response from Companies

    Both Zillow and Redfin deny the allegations, asserting their partnership is beneficial.

Takeaways

The outcome of this lawsuit could significantly impact the online housing rental market.

Read the full article on CNBC