Mayes explained the purpose of the complaint<\/a> is to try and dissolve the agreement between the two rental housing listing sites.<\/p>\n \u201cOur listing syndication with Redfin benefits both renters and property managers and has expanded renters\u2019 access to multifamily listings across multiple platforms,\u201d a Zillow spokesperson said in a statement to KTAR News 92.3 FM.\u00a0\u201cIt is pro-competitive and pro-consumer by connecting property managers to more high-intent renters so they can fill their vacancies and more renters can get home. We remain confident in this partnership and the enhanced value it had delivered and will continue to deliver consumers.\u201d<\/p>\n Why does Mayes want to stop the anticompetitive agreement between Zillow and Redfin?<\/p>\n According to Mayes\u2019 office, Internet Listing Service (ILS) providers are free for renters and landlords of single-family homes and smaller multi-family buildings, but charge larger rentals a fee to post and advertise on their site.<\/p>\n Mayes highlighted that over the past decade Zillow and Redfin have been systematically eliminating competition by acquiring other sites, including HotPad, Trulia, Rent.com and Apartmentguide.com. The announcement added that the agreement would further consolidate the market.<\/p>\n It also explained that on Feb. 6, Zillow paid Redfin $100 million to exit the ILS market for multifamily properties and that Redfin now uses Zillow as its exclusive provider for rental listings with its sites mirroring Zillow\u2019s listings.<\/p>\n In addition, it claimed Redfin will introduce Zillow sales representatives to its advertising customers, turn over competitively sensitive information, terminate all contracts with its multifamily customers and not compete with Zillow on multifamily rental property postings for up to nine years.<\/p>\n \u201cWe are suing (to try and stop the merger) under the Sherman Antitrust Act as well as the Clayton Act in the Eastern District of Virginia,\u201d Mayes told\u00a0KTAR News.\u00a0<\/p>\n The complaint alleges the agreement violates section 1 of the Sherman Act and section 7 of the Clayton Act due to it decreasing the competition in the ILS market in both price and quality. It also argues that rental listing prices are likely to increase while quality goes down, leading to higher fees for renters.<\/p>\n Mayes is joined in the lawsuit by the attorneys general of California, Connecticut, New York, Virginia and Washington. The states are working in collaboration with the Federal Trade Commission<\/a>.<\/p>\n \u201cWe have strong antitrust laws that allow us to protect our competitive, free and fair economy, and we need to enforce them,\u201d Mayes said.<\/p>\n KTAR News 92.3 FM\u2019s Balin Overstolz-McNair contributed to this report.\u00a0<\/p>\n We want to hear from you.<\/p>\n Have a story idea or tip? Pass it along to the KTAR News team here<\/a>.<\/p>\n
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