Zillow and Redfin Agree to FTC Order Regarding Alleged Rental Advertising Coordination
Zillow and Redfin Agree to FTC Order Regarding Alleged Rental Advertising Coordination
Zillow Group, Inc. has agreed to a settlement with the Federal Trade Commission (FTC) to resolve allegations regarding an agreement with rival Redfin. The regulatory action centers on claims that the two real estate technology companies illicitly coordinated to limit the effectiveness of rental listing advertisements on their respective platforms.
The FTC’s complaint alleges that the companies entered into an agreement not to call each other regarding competitive hiring. Furthermore, the regulators asserted that the firms worked together to restrict the interoperability of their rental ad display technologies, which effectively reduced the reach and utility of advertisements purchased by landlords on rival sites.
As a condition of the settlement, the companies have agreed to cease the alleged anti-competitive practices and adhere to stricter compliance standards moving forward. This development removes a layer of regulatory uncertainty that has been hanging over the digital real estate marketplace.
Following the news, shares of Zillow Group moved higher in the trading session. The stock was last seen up 2.68%, trading at $36.47. The company currently holds a market capitalization of approximately $7.58 billion and operates within the Communication Services sector, specifically in the Internet Content & Information industry. Zillow’s business segments include Residential, Mortgages, Rentals, and Other operations.
What to watch
- Earnings Reports: Upcoming quarterly financial results from both Zillow and Redfin to assess the financial impact of the settlement.
- Compliance Measures: Implementation of the new compliance protocols required by the FTC order.
- Rental Sector Trends: Data on rental listing volume and advertising revenue in the digital real estate market.
Source: original release