A Virginia federal judge has fused two major antitrust actions accusing Zillow Group Inc., Zillow Inc., and Redfin Corp. of striking an illicit deal that reshaped the online property-listing universe. The ruling — issued Nov. 26 by U.S. District Judge Anthony J. Trenga — granted the states’ consolidation request with no resistance from the companies, pulling the suits into a single blockbuster proceeding.
The Federal Trade Commission and the attorneys general of New York, Virginia, Arizona, Washington and Connecticut allege that Zillow paid Redfin a staggering $100 million to essentially bow out of direct competition in the high-stakes arena of online multifamily property listings. The FTC fired the first legal shot in September; the states followed quickly with a parallel complaint.
A $100 Million Deal That Allegedly Reshaped an Industry
According to federal regulators, Redfin didn’t just step aside — it allegedly hollowed out its own operations to give Zillow a smoother road. The FTC claims Redfin axed hundreds of workers, handed over confidential advertising data, abandoned multifamily ad contracts and shuttered its own multifamily sales efforts entirely, clearing the way for Zillow to dominate listings involving buildings with 25 or more units.
The agency’s complaint paints the agreement as a maneuver worthy of a courtroom thriller:
“This bargain is an end run around competition,” the FTC wrote, arguing that it violated Section 1 of the Sherman Act and, if viewed as an acquisition, ran afoul of Section 7 of the Clayton Act.
Judge Trenga previously paused the states’ case due to the federal government shutdown, but consolidation now puts all claims on a shared track.
