On the FTC's Case Against Zillow
A clearly defined straightforward case, but with possible implications
It is always news when the federal government brings a lawsuit or any kind of an enforcement action against a major player in the industry. But it’s been a busy time, what with Compass completely changing the industry environment, and travel got in the way as well.
But you don’t come here for breaking news, usually. You come here for analysis. And there is a lot to analyze and think about in the Complaint.
I’ve read the news coverage to date, as well as the Complaint both by the FTC and the five (so far) State Attorney Generals who have sued Zillow here. As always, it is perilous to opine without hearing from the other side and Zillow has not filed an Answer. I am sure it will be solid, as Zillow has great lawyers.
Nonetheless, right now things look really, really bad for Zillow. Unless their Answer has some bangers in it, they are likely to lose, which means they’re likely to settle. Except it isn’t clear what that settlement even looks like.
Let’s get into it.
As always, none of this is legal advice or investment advice; it is educational entertainment and industry analysis.