NEW YORK (AP) — The U.S. Federal Trade Commission is suing Zillow and Redfin, accusing them of an illegal deal to suppress competition in online rental advertising. The FTC filed the lawsuit on Tuesday, alleging the agreement began in February when Zillow paid Redfin $100 million. The deal allegedly required Redfin to end contracts with advertising partners and stop competing ads for multifamily properties. The FTC claims this violates federal antitrust laws and could lead to higher prices and fewer choices. Zillow and Redfin, meanwhile, both argue that their partnership benefits renters.
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