Attorneys general from five states filed a joint lawsuit against Zillow and Redfin on Oct. 1 for allegedly engaging in an illegal scheme to stop competition in the online housing rental market.

The lawsuit comes just a day after a similar one was filed against the real estate companies by the Federal Trade Commission.

Officials from New York, Connecticut, Virginia, Arizona and Washington claim that a February 2025 deal between the two companies resulted in Zillow paying Redfin "$100 million to shut down its apartment rental advertising business and transfer its clients to Zillow."

"This agreement is nothing more than an end run around competition that insulates Zillow from head-to-head competition on the merits with Redfin for customers advertising multifamily buildings," the lawsui

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