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Five states, FTC sue Zillow and Redfin over $100M deal
['Zachery Schmidt', 'The Center Square Contributor']
Just The News - Not The Noise
(The Center Square) -Arizona joined four other states and the Federal Trade Commission in filing a lawsuit on Wednesday against Zillow and Redfin over their $100 million contract agreement.
In February, the two companies announced an agreement that said Zillow will be the exclusive provider of multifamily rental listings of 25 or more units on Redfin, rent.com and apartmentguide.com.
The companies stated in a press release that this partnership will enable renters to view a broader selection of available apartments.
"This Zillow partnership will give Redfin visitors access to one of the largest and fastest-growing databases of rental listings," said Redfin CEO Glenn Kelman.
In addition to all this, Redfin provided Zillow with sensitive information and fired almost its entire rental sales force, with Zillow subsequently rehiring certain employees, the lawsuit stated.