Home Real Estate Zillow, Redfin Lean Into Arguments Against “Meritless” FTC Suit

Zillow, Redfin Lean Into Arguments Against “Meritless” FTC Suit

by Deidre Salcido
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Zillow and Redfin logos with courthouse 1024x576.jpg

The two portals filed a reply to their motion to dismiss late last week further arguing that claims against them are “meritless.” A hearing on their motion to dismiss is scheduled for Feb. 25.

As Zillow and Redfin continue to push back against antitrust allegations from the Federal Trade Commission and several state attorneys general, the two portals filed a reply to their motion to dismiss late last week, further arguing that claims against them are “meritless.”

The two companies said that the case’s plaintiffs have attempted to further various arguments unsuccessfully about why “traditional antitrust standards” do not apply in their case in order to evade dismissal of the lawsuit altogether.

In their filing, Zillow and Redfin argued that plaintiffs have both shown in their own complaint how renters and landlords are inherently intertwined on listing platforms, but focus only on how the Zillow/Redfin partnership could harm property managers and not how it can benefit renters.

The portals also refuted plaintiffs’ claims that the market for paid internet listing service advertising is national, arguing that such advertising is a local endeavor and that property managers advertise listings in specific markets. The plaintiffs also seem to have dismissed other advertising venues that property managers have access to, including social media and other online platforms, Zillow and Redfin argued.

The FTC and its fellow plaintiffs have also failed to show that Zillow and Redfin command enough market power to raise prices, the defendants argued. The federal regulatory body has not shown any “actual, ongoing harm to competition” through the syndication agreement, but merely predicts future harm, the filing stated, which is not enough to allow the case to move forward.

The lawsuit was first filed in late September 2025, and claimed that in paying Redfin $100 million to host all its larger multifamily rental listings on the Zillow platform, Zillow dolled out funds so that Redfin would exit the space, thereby eliminating competition.

Zillow and Redfin filed a motion to dismiss the case on Jan. 13, 2026.

Over the last several weeks, plaintiffs and defendants have been engaged in discovery and have reported to the court that they are making progress there. The case’s judge, William B. Porter, asked Zillow and Redfin earlier this month to hand over written communications between key executives at both companies and other individuals who may have been involved in discussions over the syndication agreement.

A recent status report update filed by both parties said that Zillow has produced about 240,000 custodial and 1,100 noncustodial documents, while Redfin has provided about 91,000 custodial and 500 noncustodial documents.

A hearing on the defendants’ motion to dismiss is scheduled for Feb. 25.

Email Lillian Dickerson

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