"In the complaint, the FTC alleges that the companies violated federal antitrust laws earlier this year when Zillow paid Redfin $100 million to essentially re-host Zillow multifamily rental listings on Redfin and its sites. Zillow- and Redfin-owned platforms like Zillow Rentals and Rent.com are used by millions of Americans searching for their next home, the FTC said. As part of the arrangement, the agency said Redfin agreed to terminate contracts with its existing advertising customers and assisted Zillow in acquiring that business."
"Redfin also committed to staying out of the multifamily advertising market for up to nine years and reduce its role to merely syndicating Zillow's listings, making Redfin's sites virtually identical to Zillow's. The FTC also alleges that Redfin fired hundreds of employees shortly after the deal was signed and then helped Zillow selectively rehire many of them. Following the FTC's announcement, shares of Zillow and Redfin parent Rocket Companies fell sharply in afternoon trading."
The Federal Trade Commission alleges Zillow and Redfin conspired to reduce competition in the online multifamily rental listing market. The complaint states Zillow paid Redfin $100 million to re-host Zillow’s multifamily listings on Redfin and its sites. The arrangement allegedly included Redfin terminating contracts with existing advertising customers, assisting Zillow in acquiring that business, and committing to stay out of the multifamily advertising market for up to nine years while only syndicating Zillow’s listings. The FTC alleges Redfin fired hundreds of employees and then helped Zillow selectively rehire many. Shares of the parent companies fell after the announcement, and Zillow said the syndication expanded renters’ access.
Read at www.cnbc.com
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