Zillow, Rocket Face August FTC Trial Over Rental Listing Deal

Zillow Group Inc. and Rocket Companies Inc.’s Redfin are scheduled to go to trial in August 2024, following the US Federal Trade Commission’s challenge to their apartment-listing partnership. A judge in Virginia rejected the government’s request for an early ruling on the case, meaning the companies will have to defend their deal in court.

The FTC sued in December 2023, alleging that the partnership between Zillow and Realogy Brokerage Group LLC, which includes the Redfin brand, would harm competition in the rental listing market. The agency argued that the deal would give Zillow and Realogy too much control over the market for listing services for rental properties, potentially leading to higher prices or reduced quality for consumers. The FTC sought to block the partnership, citing concerns that it would stifle innovation and reduce choices for renters and landlords.

Zillow and Realogy have maintained that their partnership is pro-competitive and will benefit consumers. They argue that the deal will enhance the services offered to renters and landlords, improve efficiency in the rental market, and ultimately lead to better outcomes for all parties involved. The companies have stated their intention to vigorously defend their agreement against the FTC’s allegations.

This trial represents a significant moment for both Zillow and Rocket Companies, as well as for the broader real estate technology sector. A ruling against the partnership could set a precedent for future mergers and collaborations within the industry, potentially leading to increased scrutiny from antitrust regulators. The outcome will hinge on the court’s assessment of whether the proposed partnership indeed violates antitrust laws by substantially lessening competition.