Attorney General James ends Zillow and Redfin agreement that illegally restricted competition in the apartment rental advertising market

New York – New York Attorney General Letitia James and a coalition of state attorneys general, working with the Federal Trade Commission, have reached a settlement that ends an agreement between Zillow Group, Inc. and Redfin Corporation that officials said unlawfully prevented the two major rental listing platforms from competing with each other.

The settlement requires Zillow and Redfin to restore the competition that existed before the companies entered into their agreement in February 2025. As part of the deal, Redfin will rebuild its multifamily apartment advertising business and return to selling its own advertising products. The companies are also prohibited from entering into similar anticompetitive agreements in the future.

Zillow and Redfin operate two of the three largest online platforms used by renters looking for apartments and by building managers seeking to advertise available units. Because of the size and reach of the two companies, state and federal officials argued that their decision to stop competing could have significant consequences for both renters and property managers.

The dispute centers on two agreements signed by Zillow and Redfin on February 6, 2025. Under one of those agreements, known as the Partnership Agreement, Zillow paid Redfin $100 million to leave the market for advertising apartments in buildings containing 25 or more units. Redfin also agreed to transfer its multifamily advertising business to Zillow.

The second agreement, called the Content License Agreement, placed additional restrictions on Redfin. Under its terms, Redfin agreed to stay out of the multifamily rental advertising market for as long as nine years. Instead of independently developing and selling its own apartment advertising products, Redfin would use its websites to display apartment rental listings that were also appearing on Zillow’s platforms.

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Authorities said the arrangement effectively removed a major competitor from the market. Rather than competing for property managers, apartment listings and renters, the companies had agreed to divide their roles in a way that gave Zillow a stronger position in multifamily rental advertising.

Attorney General James and the other states involved argued that the agreements could lead to higher prices and fewer choices. They also said the arrangement threatened to reduce the incentive for both companies to improve their services, develop new features and compete for customers.

“Online rental listing platforms are critical tools that New Yorkers rely on to find affordable homes,” said Attorney General James. “Zillow and Redfin’s illegal agreement to stop competing threatened to raise costs for both renters and landlords and make it harder for New Yorkers to find a place to live. After we took action to enforce the law, Zillow and Redfin will continue to compete and invest in improving their services.”

The legal challenge followed in October 2025, when James and the coalition sued Zillow and Redfin over the agreement. The lawsuit alleged that the companies’ arrangement violated federal antitrust laws and harmed consumers as well as businesses that depend on online rental advertising.

The newly reached settlement is designed to undo the restrictions created by the agreements. Redfin will once again be able to list apartment units independently and sell advertising services directly to multifamily property managers. The company will also invest in rebuilding its apartment advertising operation and hire employees responsible for acquiring and maintaining customers.

Another important part of the settlement is the removal of provisions that required Redfin to rely exclusively on Zillow’s apartment listings. Redfin will no longer be required to use Zillow’s listings as the sole source of rental listings displayed through its network.

The settlement therefore restores the possibility of direct competition between the two companies. Redfin can develop its own products and services, compete for advertisers and seek to attract renters independently of Zillow. Zillow, meanwhile, will again face competition from a major company in the apartment advertising market.

Officials said the return of competition should encourage both businesses to work harder to attract users and customers. With the restrictions removed, the companies will have greater reason to improve their platforms, offer better services and compete on the quality and value of their products.

Zillow and Redfin must also pay a combined $2 million to the coalition as part of the settlement. In addition, the companies are barred from entering into future agreements that would improperly restrict competition between them.

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The action was led by New York alongside the FTC and attorneys general from Arizona, Connecticut, Washington and Virginia. The multistate effort reflects the broader concern among state and federal regulators about agreements between major online platforms that can reduce competition in markets used by consumers and businesses.

For New York, the case was handled by Assistant Attorney General Luisa Di Lauro and Senior Enforcement Counsel Michael Schwartz of the Antitrust Bureau. They worked under Deputy Bureau Chief Amy McFarlane and Bureau Chief Elinor Hoffmann.

The Antitrust Bureau operates within the Economic Justice Division, which is led by Chief Deputy Attorney General for Economic Justice Chris D’Angelo and overseen by First Deputy Attorney General Meghan Faux.

With the settlement now in place, Redfin is expected to rebuild a business it had previously agreed to abandon, while Zillow will once again face an independent competitor in the multifamily rental advertising market. For renters and property managers, the agreement means the two platforms can compete again rather than operating under the restrictions that regulators said had improperly limited their rivalry.