Episode Details

The Zillow-Redfin case never went to court. Instead, the FTC, five states, Zillow, and Redfin agreed to a settlement that does something more interesting than just unwind the deal. Zillow can continue syndicating rental listings to Redfin, maintaining the cooperation the companies say yields efficiencies. But Redfin needs to rebuild its own rental-advertising business and re-emerge as an independent competitor. This episode asks what the settlement tells us about the economics of antitrust remedy. Did the earlier lawsuit assist both parties in reassessing the risks of trial? Why would Zillow want to do a competitor a favor? And can a remedy preserve the efficiencies of cooperation while removing the ban on competition? We also compare the settlement to the Google search remedies, where rivals are being given access to inputs that could help them compete more effectively. The court case may be wrapping up. The economic experiment has just begun.

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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