State AGs sue Zillow, Redfin for alleged antitrust violation
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General lawyer from five states sued Zillow And on Wednesday, Redfin claims that companies are planning to stop competition in the online housing rental market.
The case follows a similar case against the Federal Trade Commission on Tuesday.
New York, Arizona, Connecticut, Washington and Virginia officials filed a lawsuit on Wednesday and Zillow’s “Redfin’e apartment rental advertising business to close the business and transfer its customers to Zillow paid $ 100 million,” he said. News Bulletin.
“This agreement is nothing more than a end around the competition that isolate Zillow from competition with Redfin for customers who advertise very family buildings.”
The case claims that the agreements violate the laws of federal antitröst and may harm the tenants using their resources. He also claims that Redfin fired hundreds of employees and then works with Zillow to restart some.
“Millions of New York rely on online apartment lists to find a suitable and safe place to live in New York.” He said. “Zillow’s attempt to close the competition can increase costs for advertisers and leave tenants with less options when looking for a new apartment.”
According to James’s office, Zillow, Redfin and Costar, the owner of Apartments.com, account for 85% of the three largest players and all market revenues on the market.
AGS is looking for a precautionary measures that are allegedly proposing the possible reconstruction of businesses in order to maintain competition.
“Redfin does not strongly participate in the allegations and confident that we will be right by a court.” He said. “Our partnership with Zillow was given Redfin.com Visitors access more rental list and our advertising customers access more tenants. At the end of 2024, it was clear that existing Redfin advertising customers could not justify the cost of protecting our rental sales power. The partnership with Zillow reduced these costs and enabled us to invest more in rent search innovations. Redfin.comThose looking for direct benefiting apartment. “
A Zillow spokesman said that the company’s partnership with Redfin is “competitive and pro -consumer pro -consumer to fill their empty positions and go home by connecting property managers to higher tenants.
Zillow and Redfin’s parent company shares Rocket companies Following the FTC’s case, after each losing on Tuesday, it was initially lower after the announcement.
FTC’s complaint referring to a similar claim between the two companies. Zillow and Redfin did not participate in these claims and said they were confident in their partnerships.
