Zillow Agrees to Settle FTC Antitrust Allegations Regarding Rental Listings
Zillow Agrees to Settle FTC Antitrust Allegations Regarding Rental Listings
Zillow Group, Inc. has agreed to resolve claims brought by the Federal Trade Commission (FTC) alleging that the digital real estate platform engaged in anti-competitive behavior within the apartment rental sector. The regulatory agency contends that Zillow made payments to rival Redfin Corporation to dissuade the company from competing on rental listings.
According to the complaint, Zillow’s strategy involved paying Redfin to cease its efforts to build out a rental listings platform. The FTC argues that this agreement effectively eliminated competition between the two major property technology firms, depriving consumers of the benefits of a competitive marketplace. By compensating a rival to stay out of a specific market segment, Zillow allegedly violated antitrust laws designed to foster fair competition.
This legal development arrives as Zillow continues to navigate the shifting landscape of the U.S. housing market. The company, which operates through its Internet Content & Information segment, connects consumers with agents and loan officers across its Residential, Mortgages, and Rentals categories. While the company has refocused its core operations in recent years, its rentals division remains a significant component of its digital ecosystem.
Following the news, Zillow Group, Inc. shares moved higher in mid-day trading. The stock was up 3.72%, trading at $36.84. The company’s market capitalization stands at approximately $7.58 billion.
What to watch
- Finalization of the settlement terms and any required operational changes.
- Future regulatory scrutiny on other partnerships within the proptech sector.
- Zillow’s upcoming earnings report for performance metrics across its Rentals and Mortgages segments.
Source: original release