FTC Sues to Unwind Zillow-Redfin Rental Listing Partnership (3)

The US Federal Trade Commission sued to block a partnership to make Zillow Group Inc. the exclusive provider of information on apartment rentals offered by Rocket Companies Inc.’s Redfin.

In a complaint filed in Virginia federal court, the FTC said the partnership would reduce the number of websites offering apartment listings, leaving consumers with fewer places to search for and driving up the price for buildings that want to advertise.

Shares of Zillow dropped 4.5% on Tuesday, while Rocket fell 3.8%.

Under the agreement announced in February, Zillow made an upfront payment of $100 million to Redfin to help ...