FTC suits Zillow and accuses it of buying a RDFin competitor

Federal Trade Committee (FTC) Zillow search siteThe pretext that it paid the RDFin competition $ 100 million to get rid of competition in online business. The lawsuit indicates a deal that was exposed in February between the two companies in which Redvin agreed to become a “exclusive union of Zillow menus”.

The allegations indicate this Redfin began copying on Zillow lists Instead of creating its own lists, which gave Zillow more control over the space. The lawsuit also accuses RedFin of agreeing to end contracts with advertising customers in an alleged attempt to give up more reasons to Zillow.

The Federal Trade Committee went on that this anti -competition practice will lead to high prices and exacerbation conditions for both tenants and advertisers. The lawsuit said: “This agreement is nothing more than just a competition that revolves around the competition that isolates Zillow from a face -to -face competition for RedFin’s advantages for customers who announce multi -capacity buildings.”

Zillow issued a statement on the lawsuit, Who published it CNN. The statement was launched on the previous deal with RedFin “Pro-Cometitive and Pro Sonsumer”, and indicated that “our Syndication with RedFin benefits from tenants and real estate managers and expands the access of tenants to multi-capacity lists via multiple platforms.”

RDFIN also does not agree to FTC allegations, saying that “by the end of 2024, it was clear that the current number of RDFin customers was not able to justify the cost of maintaining our rental sales power.” The company continued that “the partnership with Zillow has reduced these costs and enabled us to invest more in the innovations of rental research on RedFin, and benefit directly from apartments.”

FTC also claims that Redfin has resulted in hundreds of workers as part of the deal, as it continued to help Zillow to employ some of these employees. Basically, the agency accuses Zillow of acquiring a large part of RDFIN, all while hiding behind the idea of ​​partnership to avoid scrutiny. FTC has asked the court to end the agreement and consider stripping assets.

This is not the only current legal conflict in which Zillow finds itself. A real estate brokerage company called COMPASS issued its own A lawsuit in JuneAccusing Zillow of engaging in anti -competition practices.