Episode Details

The antitrust case against Zillow and Redfin was scheduled to go to trial. The parties instead settled. The FTC did not kill the entire partnership. The companies will still syndicate rental listings to Redfin, maintaining the efficiencies they say benefit renters and property managers. But Redfin has to rebuild its independent rental advertising business and compete against Zillow again. Then who won? This episode goes deeper than the legal headlines and asks how it was economically feasible for both sides to settle. We will additionally address how pretrial litigation may have altered the bargaining positions of the parties, why Zillow had less incentive to continue litigating once the FTC retained the syndication efficiencies, and why Redfin may become a more formidable competitor than it was before. The larger question is whether today’s antitrust remedies can restore rivalry while preserving cooperation.

Continue the cooperation. Bring back the rivalry. Now we get to see if it works.

Read the full article and graphic analysis: https://blog.econworks.com/p/the-ftc-lost-the-motion-then-zillow?r=562wri

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