The Federal Trade Commission’s antitrust case against Zillow Group and Redfin goes to trial Monday in Alexandria, Va., putting the structure of the online rental advertising market before a federal judge for the first time.
U.S. District Judge Anthony J. Trenga will hear the case without a jury beginning Aug. 24 at 10 a.m. in the Eastern District of Virginia, following a status conference at 9:30 a.m. The FTC filed proofs of service for trial subpoenas on Aug. 20, a list that includes Redfin Chief Executive Glenn Kelman.
The government’s theory: a payment to stop competing
The FTC sued the two companies on Sept. 30, 2025, alleging that a February 2025 arrangement between them was an illegal agreement to eliminate competition rather than a legitimate commercial partnership.
According to the complaint, Zillow and Redfin “executed an unlawful agreement to remove competition from this already highly concentrated market, starting with a $100 million payment to Redfin to exit the ILS advertising market.” ILS refers to internet listing services — the sites where property managers advertise apartments to renters.
The complaint alleges Redfin agreed to stop competing for up to nine years, became a syndicator of Zillow’s listings rather than an independent seller of advertising, and “promptly terminated hundreds of employees” as a result.
The FTC’s market definition centers on multifamily buildings with 25 or more units. The agency notes Redfin had entered rentals in 2021 by acquiring RentPath, owner of Rent.com and ApartmentGuide.com, and that Zillow itself estimated in May 2024 that it had “more than 50% of all rental listings — more than any other site.”
Daniel Guarnera, director of the FTC’s Bureau of Competition, framed the case in blunt terms when it was filed. “Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” he said. “Zillow paid millions of dollars to eliminate Redfin as an independent competitor in an already concentrated advertising market — one that’s critical for renters, property managers, and the health of the overall U.S. housing market.”
Guarnera added that “the FTC will do our part to ensure that Americans who are looking for safe, affordable rentals receive all the benefits of robust competition between internet listing services like Zillow and Redfin.”
The commission vote authorizing the suit was 3-0.
The case survived two attempts to end it early
The litigation has already cleared two procedural hurdles in both directions. Trenga denied the defendants’ motion to dismiss in May. In July, he also denied the FTC’s motion for partial summary judgment, finding genuine disputes of material fact that require a trial.
That second ruling matters. It means the judge has concluded the government’s case is not so clear-cut that it can be resolved on the papers, and that Zillow and Redfin will get to contest the facts in open court.
The claims are brought under Section 1 of the Sherman Act and, the FTC argues, “[c]onsidered as an acquisition… unlawful under Section 7 of the Clayton Act.” The agency is seeking a permanent injunction and other equitable relief rather than monetary damages.
Five state attorneys general — from Virginia, Arizona, Connecticut, New York and Washington — filed a parallel complaint on Oct. 1, 2025. Trenga consolidated the cases late that year.
What it means
The verified facts are the filing, the allegations, the procedural history and the trial date. Nothing about the merits has been decided.
RealtyWire’s analysis is that the stakes here are structural rather than financial. Because the FTC is seeking injunctive relief, the realistic worst case for Zillow is not a fine but an order unwinding or restricting the Redfin arrangement — a remedy that would directly reshape how apartment advertising inventory reaches renters.
Zillow has been carrying the cost of this fight for some time. The company disclosed $26 million in FTC litigation costs in the second quarter alone, when it reported revenue up 18% to $772 million, with rentals revenue up 31% and multifamily revenue up 42%. Rentals is the fastest-growing part of Zillow’s business and the part this case is about.
The case also lands during a broader period of legal and regulatory pressure on residential listing platforms. A separate class action alleging Zillow steered homebuyers toward its mortgage unit was dismissed without prejudice in July, and the company has been renegotiating MLS data licenses with new restrictions on how listing content may be used.
What to watch
Because this is a bench trial, there will be no jury verdict moment. Trenga will hear the evidence and rule, and post-trial proposed findings of fact are due 21 days after the trial concludes. A decision is unlikely to arrive quickly.
Testimony is the near-term story. The subpoena list points to senior executives from both companies taking the stand, and the internal communications around the February 2025 agreement are likely to be the core of the government’s proof. What those documents show about intent will do more to determine the outcome than anything either company says publicly this week.
