Zillow and Redfin have settled their legal dispute with the Federal Trade Commission (FTC) and five states, bringing an end to a battle over rental-listing partnerships. The case centred on a deal where Redfin agreed not to compete directly with Zillow for rental advertisers in exchange for $100 million.

The FTC accused Zillow of stifling competition by paying off its rival, potentially allowing it to charge higher prices and provide less favourable terms to property managers. This arrangement could have excluded Redfin from the rental advertising market for up to nine years.

Under the settlement, Redfin is free once again to compete independently for property-management customers and sell its own listings. Zillow's restrictions on sharing sensitive business information with Redfin are lifted, allowing both companies to pursue their interests more freely.

The resolution of this case comes amid other antitrust actions, such as the DOJ’s settlement with Ticketmaster. It highlights the ongoing tension between collaboration and competition in tech markets.