Zillow has settled an antitrust lawsuit brought by the US Federal Trade Commission (FTC), which had accused the online property platform of paying rival Redfin $100 million to exit the internet listing service (ILS) market for apartment rentals. Under the settlement, the agreement that shut down Redfin's ILS business is reversed, and Redfin must re-enter the market with a stronger offering. The FTC said restoring competition is expected to lower costs and encourage innovation for renters and property management firms.

The lawsuit was originally filed in September 2025, with Arizona, Connecticut, New York, Virginia and Washington later joining a related case that merged with the FTC's action that November. As part of the resolution, Redfin must relaunch its ILS listings with "significantly more" properties, and Zillow is required to share employee information with Redfin to support recruitment. Zillow must also let its customers renegotiate contracts without extra fees or penalties.