Washington and four other states have filed a lawsuit against Zillow and Redfin, alleging that the property listing companies violated antitrust laws, according to a release from WA Attorney General Nick Brown.
The lawsuit, filed on Wednesday, claims that Zillow paid Redfin $100 million to leave the multifamily property listing market, working to eliminate a major competitor.
The claim alleges the agreement also required Redfin to transition its property management clients to Zillow and incentivize its sales representatives to shift clients accordingly.
“Enforcing our antitrust laws to keep the marketplace fair, protect consumers, and prevent companies from building monopolies is a priority for our office,” Attorney General Brown said.
The lawsuit also alleges that Redfin agreed to solely display Zillow’s rental listings for large multifamily properties on its sites.
The Federal Trade Commission has also taken action, alleging both companies violated antitrust laws and worked to eliminate competition.
In a release published on Wednesday, AG Brown said services like Zillow and Redfin are important tools for Washington residents to find rental housing amid a housing crisis.
The five states involved in filing the lawsuit include Washington, Virginia, Connecticut, New York, and Arizona who are seeking a court order to restore competition and prevent future violations.