Trump’s FTC gets a big win, but the job is far from over– www.theblaze.com
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EXCERPT:
Hours before trial was set to begin last month, the Federal Trade Commission and five state attorneys general settled their antitrust case against Zillow and Redfin. While this was a major success, and the FTC should be proud, there is still more to be done.
More than 30% of American households rent. For most of them, the search begins and often ends inside one company’s ecosystem, which is a major violation of antitrust principles and laws.
The solution does not actually touch the cost of rent for average people.
To be clear, the government was able to achieve much. In a $100 million deal, Zillow had paid Redfin to shut down its multifamily rental-advertising business, transfer its customers and salesforce, and stay out of the market for as long as nine years. That deal is now dead. Instead, Redfin will have to restart its former business within six months and display Zillow’s listings under a partnership that will continue through at least 2030.
This remedy is superior to potential alternatives, such as a fine, which often does not actually solve the problem. Gigantic monopolies can usually absorb these fines and continue to violate antitrust law. Requiring actual change goes a long way toward solving the problem.
This was, to be clear, a rather easy antitrust case. The Zillow-Redfin deal was a blatant violation of the core principles of antitrust. The companies literally signed an agreement not to compete, with a nine-figure bribe thrown in.
The FTC was also not alone in its demands against Zillow and Redfin. Virginia, Connecticut, New York, Washington, and Arizona all joined in. After securing the required changes, FTC Chairman Andrew Ferguson hailed the result as a critical part of the Trump administration’s housing agenda.
