FTC sues Zillow and Redfin, alleging antitrust violation in online rentals
Zillow Group’s stock market graph is displayed on a smartphone with Zillow logo on 21 February 2021.
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The Federal Trade Commission suits Real Estate Giants Zillow And RedClaiming that it has illegally conspiring to reduce competition in the online very family rental list market The agency said on Tuesday.
Inside complaintFTC claims that companies have violated the Federal Antitröst laws that Zillow paid $ 100 million to host Redfin and their sites on Redfin and their sites.
FTC said platforms such as Zillow Rentals and Zillow Rentals and Rent.com are used by millions of Americans who are looking for their next homes.
As a part of the regulation, agency Redfin agreed to terminate contracts with existing advertising customers and helped Zillow to acquire it. Redfin also undertakes to stay away from many family advertising markets for up to nine years, and to reduce Zillow’s lists of unionization role and make Redfin’s sites almost the same as Zillows.
FTC also claims that Redfin fired hundreds of employees shortly after the agreement has been signed and helps Zillow selectively re -manage many of them.
“FTC Competition Office Director Daniel Guarnera said in a statement,” Paying an opponent to stop the competition against you is a violation of the Federal Antitröst laws. ” He said. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in a concentrated advertising market – he is critical for the health of the general US housing market.”
Following the announcement of FTC, Zillow and Redfin parent rocket companies fell sharply in their trade in the afternoon.
“Our listing syndication with Redfin provides benefits to both tenants and property managers and expanded the access to multiple family lists on multiple platforms,” ”Redfin and Redfin said. He said. He continued: “In order to fill their empty positions and more tenants to go home, they are competitive and pro -consumer by connecting their property managers to higher willing tenants. We rely on this partnership and the advanced value provided and we will continue to deliver it to consumers.”
Redfin did not respond immediately to CNBC’s comments.
The FTC’s case aims to relax the agreement and may include the requirements of disposal or restructuring to re -compete in the rental advertising market.
