"In a lawsuit filed on Tuesday, the FTC alleges that this agreement started in February - when Zillow paid Redfin $100 million. In exchange for that and other compensation, the commission said, Redfin agreed to end contracts with advertising partners, stop competing ads for multifamily properties for up to nine years and serve as a syndicator of Zillow listings on its own sites."
"Redfin also fired hundreds of employees shortly after the announcement of this plan, Tuesday's complaint notes, alleging that the company also helped Zillow hire "its pick" of these workers. "Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market - one that's critical for renters, property managers, and the health of the overall U.S. housing market," Daniel Guarnera, director of the FTC's Bureau of Competition, said in a statement Tuesday."
"In a statement, a Zillow spokesperson maintained that its "listing syndication with Redfin benefits both renters and property managers" - adding that it had "expanded renters' access to multifamily listings." The Seattle-based company said the agreement was "pro-competitive and pro-consumer." A spokesperson for Redfin, which was acquired by Detroit-based mortgage giant Rocket Companies earlier this year, added that the company "strongly disagrees with the FTC's allegations" and was confident about prevailing."
Federal Trade Commission sued Zillow and Redfin alleging an illegal agreement to suppress competition in online rental advertising. The complaint says the arrangement began in February when Zillow paid Redfin $100 million. In exchange, Redfin agreed to end contracts with advertising partners, stop competing multifamily ads for up to nine years, and syndicate Zillow listings on its sites. Redfin fired hundreds of employees after the announcement and allegedly helped Zillow hire selected workers. The FTC warns the scheme could reduce competition, raise prices, and limit choices for multifamily advertising customers. Zillow and Redfin deny the allegations; Zillow called the arrangement pro-competitive, and Redfin said it strongly disagrees and expects to prevail.
Read at Aol
Unable to calculate read time
Collection
[
|
...
]