Technology

Zillow, Redfin lean into arguments against ‘meritless’ FTC suit

February 18, 2026 5 min read views
Zillow, Redfin lean into arguments against ‘meritless’ FTC suit

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.

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dIn a new court filing, Redfin and Zillow have pushed back against the Federal Trade Commission‘s antitrust allegations, saying that the claims against them are “meritless.”

The filing is part of the FTC’s lawsuit against the portals, and is a response to a previous document the companies filed in court. In the filing, Zillow and Redfin said the plaintiffs have unsuccessfully argued that “traditional antitrust standards” do not apply in their case. The portals said the FTC and other plaintiffs made that argument in order to prevent the case from being dismissed altogether.

Zillow and Redfin also argued that the plaintiffs laid out in their own complaint how renters and landlords are inherently intertwined on listing platforms — while also focusing only on the ways the Zillow-Redfin partnership could harm property managers and not how it can benefit renters.

The portals also pushed back against 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 appear to have ignored other advertising venues that property managers have access to, including social media and other online platforms, Zillow and Redfin argued.

The FTC — along with several states that joined the suit as plaintiffs — further failed to show that Zillow and Redfin command enough market power to raise prices, the portals said in the filing. The federal regulator 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. 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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