Five States File Lawsuit to Stop Zillow-Redfin Rental Merger

Five states have filed a joint lawsuit in the Eastern District of New York as part of the federal legal challenge to the Zillow-Redfin rental merger. The states joining the lawsuit are Connecticut, Arizona, Washington, Virginia, and New York, adding to the ongoing legal battle against the $100 billion deal.

The lawsuit alleges that the merger between the two real estate giants would create a monopoly on rental listings, leading to reduced competition and higher prices for consumers. The states' attorneys general argue that the merger would harm both renters and landlords, as Zillow and Redfin would have control over a significant portion of the rental market.

"We cannot allow these companies to become too big and too powerful, crushing competition and hurting consumers," said New York Attorney General, Letitia James. "We must ensure a fair and competitive market for the benefit of all individuals looking to rent or advertise a rental property."

The lawsuit is a result of the Federal Trade Commission's (FTC) ongoing investigation into the potential anti-competitive effects of the merger. The agency has been joined by multiple state attorneys general in their efforts to block the deal, including California, Illinois, and Massachusetts.

Zillow and Redfin have both defended the merger, stating that it would bring more options and better services to renters and landlords. However, critics argue that the merger would eliminate competition and lead to higher fees for landlords to advertise their properties.

"We are confident that our proposed merger will bring more choices and better services to renters and landlords," said Zillow spokesperson, Matt Kreamer. "We are committed to working with the FTC and state attorneys general to address any concerns and demonstrate the benefits