5 months ago
4
(NewsNation) — The Federal Trade Commission is suing Zillow and Redfin, accusing the existent property companies of entering an amerciable woody to suppress contention successful online rental advertising.
In a news release, the FTC said Zillow paid Redfin $100 million. In speech for that and much compensation, Redfin agreed to extremity contracts with advertizing partners, halt competing ads for multifamily properties for up to 9 years and service arsenic a syndicator of Zillow listings connected its ain sites.
Shortly aft the agreement was made, Redfin fired hundreds of its employees and aboriginal helped Zillow prosecute its prime of the terminated employees. The FTC said this was a usurpation of antitrust laws and said the 2 companies framed the statement arsenic a fake partnership.
"Zillow paid millions of dollars to destruct Redfin arsenic an autarkic rival successful an already concentrated advertizing market—one that’s captious for renters, spot managers, and the wellness of the wide U.S. lodging market," Daniel Guarnera, manager of the FTC’s Bureau of Competition, said.
The FTC argued that the companies’ “unlawful scheme” whitethorn trim incentives for further contention and could pb to higher prices and less choices for multifamily rental advertizing customers.
In abstracted statements to The Associated Press, some Zillow and Redfin maintained that the statement was "pro-competitive and pro-consumer" and that they "strongly disagree" with the commission's allegations.
