FTC sues Zillow and accuses it of buying off rival Redfin

The Federal Trade Commission (FTC) has sued home-search website Zillow, alleging that it paid rival Redfin $100 million to eliminate competition in the online listing business. The FTC claims that Redfin began copying over listings from Zillow instead of creating its own, giving Zillow more control over the market. The FTC also accuses Redfin of agreeing to end contracts with advertising customers, allegedly to cede more ground to Zillow. The FTC argues that this anti-competitive practice would lead to higher prices and worsening terms for both renters and advertisers. Zillow has defended the deal, calling it "pro-competitive and pro-consumer," while Redfin has suggested that the partnership cut costs and enabled it to invest more in rental-search innovations. The FTC has asked the court to end the agreement and consider a divestiture of assets. This is not the only legal dispute Zillow finds itself in, as Compass has also sued the company for engaging in anticompetitive practices.