Five states on Wednesday sued Zillow and Redfin, alleging that the two online apartment rental marketplaces violated federal antitrust laws and throttled competition in the market.

Attorneys general from five states — Virginia, Washington, Arizona, Connecticut and New York — filed the joint lawsuit in the U.S. District Court for the Eastern District of Virginia, referring to the $100 million February agreement where Zillow paid Redfin "to shut down its apartment rental advertising business and transfer its clients to Zillow."

“The practical outcome of the agreement is obvious: Redfin has terminated its existing multifamily advertising business operations and, for the duration of the agreement, has stopped competing to provide ILS advertising for multifamily properties,” the states said i

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