New York – The Office of Attorney General Letitia James has lodged a landmark suit against Zillow Group, Inc. and Redfin Corporation for orchestrating an illegal scheme aimed at squashing competition in the online apartment rental advertising market. Zillow paid Redfin a staggering $100 million to pull out of the multifamily advertising sector, effectively shutting down a fierce rivalry.
The coalition accuses Zillow and Redfin of violating federal antitrust laws by entering into agreements that could leave renters and property owners with fewer choices for finding and listing apartments. The deal, which was inked in February 2025, has already led to the termination of around 450 Redfin employees dedicated to multifamily rental advertising.
“Millions of New Yorkers rely on online apartment listings to secure affordable housing,” AG James declared. “Zillow’s scheme threatens to hike costs for advertisers and reduce options for renters at a time when New York City’s housing market is already unaffordable.”
The marketplace for online apartment rentals is currently dominated by three major players: Zillow, Redfin, and CoStar. These companies have long vied to secure listings from property management firms and landlords. However, the partnership between Zillow and Redfin has ended their rivalry with an agreement signed on February 6, 2025, which included a Partnership Agreement and a Content License Agreement.
Under these agreements, Zillow paid Redfin $100 million to cease advertising apartments in buildings of 25 units or more. Redfin, in turn, agreed not to compete in the multifamily market for up to nine years, exclusively promoting listings available on Zillow’s platforms. The arrangement is currently limited to buildings with 25 or more units but has been proposed for expansion to all apartment buildings.
Attorney General James and the coalition assert that this unlawful alliance stifles competition, raising the prospect of increased prices and diminished quality of rental advertising. They also claim that Redfin’s incentives to improve its user experience and innovate have been weakened by the deal, which could ultimately harm renters seeking homes.
RELATED: Zillow, Redfin Hit with Antitrust Suit for $100M Deal
Related Federal Cases
Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption|Organized Crime
- Source: Official Source ↗
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