This story originally appeared on Real Estate News.
The Federal Trade Commission is suing real estate giants Zillow and Redfin, alleging the two companies illegally conspired to eliminate competition in the rental listings market.
In a Sept. 30 complaint, the federal agency alleges the companies violated federal antitrust laws when Zillow paid Redfin $100 million to have Zillow be the exclusive provider of multifamily rental listings on Redfin and its sites, Rent.com and ApartmentGuide.com.
“The practical outcome of the agreement is obvious: Redfin has terminated its existing multifamily advertising business operations and, for the duration of the agreement, has stopped competing to provide [Internet Listing Services] advertising for multifamily properties,” the filing says.
“The wholesale elimination of critical competition in this highly concentrated space will harm rental advertisers and the Americans who rely on ILSs to find their next home.”
The complaint alleges violation of the Sherman Act, Clayton Act, and FTC Act.
Real Estate News has asked Zillow and Redfin for comment and will update this story if and when responses are received.
This is a developing story.
Read the full article here
