Just as the trial was set to start, Zillow and Redfin settled anticompetitive claims over a rental advertising deal raised by the Federal Trade Commission and five state attorneys general.

The agreement could lead to a Redfin that funnels more home purchase clients into its parent company, Rocket.

This case started when Zillow and Redfin entered into an agreement in February 2025. For a $100 million payment Redfin would shut its multifamily rental business and transfer its clients to Zillow.

Weeks after Zillow and Redfin agreement March 10, Rocket agreed to buy Redfin, a deal which closed at the end of the second quarter of 2025.

The FTC filed its suit that September and the following month the state AGs acted; both were combined into one legal action with the trial set to start on Aug. 24. Those states are: Arizona, Connecticut, New York, Washington and Virginia.

According to the statement put out by Zillow, as the result of the settlement, the partnership with Redfin will continue, but in 2027 both will offer standalone multifamily advertising products in addition to what they do together.

The regulators' reaction to the agreement

Who came out on top depends on who you ask.

"This kind of payment to a competitor to exit a market and stop competing violates the antitrust laws," said Daniel Guarnera, director of the FTC's Bureau of Competition, in its press release. "This settlement delivers better, quicker, more certain results for both renters and property management companies than we would have been able to achieve after prevailing at trial, including firm and enforceable commitments by Redfin to relaunch its rentals advertising business."

The New York and Connecticut releases added Zillow and Redfin must pay the coalition $2 million.

"This unfair and anticompetitive agreement between two listing giants would have jacked up costs for property managers, and renters would have been the ones to pay the ultimate price," William Tong, Connecticut's attorney general, said in a press release. "We sued, and today's settlement forces a return to fair competition and choice."

The agreement requires Zillow and Redfin to restore competition, added the press release from New York Attorney General Letitia James.

"Online rental listing platforms are critical tools that New Yorkers rely on to find affordable homes," James said in her press release. "After we took action to enforce the law, Zillow and Redfin will continue to compete and invest in improving their services." 

Zillow and Redfin claim they won

Zillow Rentals General Manager and Senior Vice President Michael Sherman said the company's syndication deal with Redfin has already broadened multifamily listing exposure across platforms, driving more leads and signed leases for property managers while giving renters more choices.

"Now, with the ability to offer more multifamily advertising solutions in addition to the existing partnership, we can do even more to support the marketplace," Sherman added.

A statement from a Rocket Companies spokesperson also painted Redfin as the victor.

"Renting is the starting point for millions of people on the path to homeownership, and a foundational part of the Redfin journey," the spokesperson continued. "This agreement allows us to maintain our rental partnership with Zillow through at least 2030 while building and investing in a standalone rentals business of our own."

The end result for consumers is Rocket building "a stronger Redfin that can meet them at any stage — from their first rental to their first home and beyond."

In February, Rocket announced a deal to market Redfin listings on Compass, which is in its own legal battle with Zillow.

"The settlement removes a meaningful legal overhang on Zillow's multifamily business, with terms that look generally favorable relative to more punitive outcomes that were on the table," Keefe, Bruyette & Woods analyst Ryan Tomasello, said in a research note. "Critically, the core Zillow/Redfin partnership and cross-platform syndication remain intact, with Zillow avoiding any major structural remedies "

The impact of Redfin's reentry is "likely manageable" for Zillow, with both companies emphasizing the syndication product as the core offering rather than the standalone, Tomasello said.

What are some of the terms of the order

The FTC said the proposed order, which has a 10-year term, calls on the two companies to amend their agreement by removing anticompetitive provision, including requiring Redfin to restart internet listing services.

"Critically, Redfin will continue syndicating Zillow's listings unencumbered by the anticompetitive restraints that prevented Redfin from fighting to secure additional listings," the FTC press release said. "As a result, Redfin will relaunch with significantly more listings than it had prior to the 2025 agreement."

Redfin will be given information from Zillow so it can recruit its employees and any non-compete, anti-poaching or other legal clauses which could keep them from accepting employment offers must be waived.

The order states Redfin could be liable for monetary penalties if it fails to follow through on the commitment to restart the internet listings business.