Zillow and Redfin Settle FTC Antitrust Case

Zillow Group and Redfin Corporation have reached a settlement with the Federal Trade Commission (FTC) to resolve an antitrust lawsuit. The settlement mandates that Redfin must re-enter the rental advertising business, a market from which it had previously withdrawn. This agreement concludes a legal dispute initiated by the FTC, which alleged that Zillow's acquisition of ShowingTime, a real estate software company, harmed competition.

The FTC's lawsuit, filed in February 2022, specifically targeted Zillow's acquisition of ShowingTime. The commission argued that Zillow's purchase of ShowingTime, a platform used by real estate agents to schedule property showings, would stifle competition and innovation in the residential real estate services market. ShowingTime is a widely adopted tool that facilitates the coordination of property tours for buyers and sellers, and its integration into Zillow's broader ecosystem raised concerns about market dominance. The FTC contended that Zillow could leverage its ownership of ShowingTime to disadvantage rival real estate brokerages and listing services.

As part of the settlement, Redfin is required to resume offering its rental advertising services. Redfin had previously ceased these services, and the FTC's order aims to restore a competitive element to that segment of the market. The terms of the settlement also include provisions designed to prevent Zillow from engaging in anti-competitive practices related to ShowingTime. While the specific details of the ongoing operational requirements for Redfin's rental advertising business were not fully elaborated in the initial announcement, the core of the agreement focuses on ensuring a more competitive landscape.

This settlement marks a significant development in the ongoing scrutiny of major technology platforms and their impact on competition within various industries. The FTC has been increasingly active in investigating acquisitions and business practices that could lead to monopolistic control or reduced consumer choice. The resolution of this case with Zillow and Redfin underscores the commission's commitment to safeguarding competitive markets, particularly in sectors as vital as real estate. The agreement allows Zillow to continue operating ShowingTime but under conditions that aim to mitigate the competitive concerns raised by the FTC.