Ftc Sues Zillow and Redfin
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The FTC has sued Zillow and Redfin for allegedly suppressing competition in rental advertising through an illegal agreement, sparking a discussion on antitrust practices in the real estate industry.
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> Likely lead to higher prices and worse terms for multifamily unit advertising; and > Reduce incentives for Zillow and Redfin to compete for renters, including through investment in attracting visitors and innovation to improve user experience when searching on an ILS for a rental property.
This seems a bit inaccurate - Redfin and Zillow are both marketplaces. They are not competing on price, but on selection.
This is a weird situation because the real victim of their collusion was not consumers, but Google! Google would have pocketed nearly all of the money from an advertisement bidding war. If anything, their collusion saves money either for customers or to innovate in user experience.