Zillow has settled an antitrust lawsuit with the Federal Trade Commission, resolving accusations that the company bought off its rival Redfin for $100 million to halt its internet listing service for apartment rentals. The FTC filed the lawsuit in September 2025, alleging Zillow acquired a rival to stifle competition. The settlement requires Redfin to re-enter the ILS market with "significantly more listings," restoring competition expected to drive down costs and spur innovation for renters and property management companies.

Additionally, Zillow must provide Redfin with employee information to facilitate recruitment and allow customers the ability to renegotiate contracts without extra cost or penalty. Several states, including Arizona, Connecticut, New York, Virginia, and Washington, had jointly filed similar suits that were merged with the FTC's case in November 2025. This resolution marks a significant shift in the real estate technology landscape, aiming to level the playing field between major platforms.