A federal judge in Virginia has denied a motion to dismiss the Federal Trade Commission’s (FTC) major antitrust lawsuit against Zillow and Redfin, clearing the way for the case to advance.
U.S. District Judge Anthony Trenga issued the ruling Wednesday night, rejecting arguments from the two companies that the FTC’s allegations didn’t meet the legal threshold for an antitrust claim. The judge found instead that the complaint states plausible claims under federal antitrust laws.
The FTC and several state attorneys general alleged in a complaint filed last September that Zillow paid Redfin $100 million-plus in ongoing monthly fees to essentially stop competing in the multifamily rental advertising market.
The agreement, which took effect in February 2025, requires Redfin to source rental listings exclusively from Zillow for nine years rather than competing to attract new listings under its own platform. Under the deal, Redfin would end its contracts with advertising customers and serve as an exclusive syndicator of Zillow’s listings on its platform.
The FTC contends this arrangement amounts to an illegal restraint on trade that would likely raise prices for property managers seeking to advertise vacancies in multifamily rental buildings and reduce both companies’ incentive to invest in making their platforms easier for renters to use.
In an emailed statement sent to RISMedia, a Zillow spokesperson said that “this decision simply allows the case to move forward. We remain confident we will demonstrate the pro-competitive and consumer benefits of our partnership with Redfin in court. In the meantime, our work supporting renters and housing providers continues uninterrupted.”
Trenga also noted in his ruling that the lawsuit was at an early stage, and that the claims were “fact-intensive,” even as he found them “plausible” at this point in the litigation.
The agencies argue Redfin, which emerged as an aggressive competitor after acquiring RentPath in 2021, was effectively neutralized as a competitive threat through the partnership.
Under the agreement’s terms, Redfin transferred the vast majority of its existing multifamily rental advertising contracts to Zillow and shares key customer information, including renter leads from its platform, under terms that don’t meaningfully incentivize Redfin to compete to generate more or better leads, the FTC argued.
Redfin was acquired by mortgage giant Rocket shortly after the Zillow deal was announced, though that did not appear to affect the agreement with Zillow.
Zillow and Redfin’s defense
In seeking dismissal, Zillow and Redfin argued the case should be dismissed on several grounds, including that their agreement actually promoted competition and benefited renters and property managers. They argued that renters who preferred Redfin’s listing service would still be able to view Zillow listings there, while property managers maintained access to two separate listing services to attract renters.
The companies also contended that the agreement would allow Redfin to redirect money from its underperforming rental advertising business toward upgrading its listing service, while giving Zillow the resources to compete more effectively for property managers’ advertising dollars.
Redfin did not respond to a request for comment at press time.
