In what the FTC is calling a “blatantly anti-competitive agreement,” Zillow paid Redfin $100 million to get out of the rental advertising business and hand over its multifamily customers. That’s not an exaggeration…according to the FTC’s 32-page federal complaint filed September 30, the agreement requires Redfin to terminate all contracts for properties with 25 or more units, share sensitive customer info, lay off its entire rentals team, and direct its clients (and staff) over to Zillow.
In return, Redfin gets to stay in the rental search game… as a syndicator for Zillow listings only. The agreement spans up to nine years and effectively kills off Redfin as a competitor in the ILS (Internet Listing Service) space for large rental properties.
