Attorneys general from New York, Arizona, Connecticut, Washington and Virginia filed a lawsuit against Zillow (Z) and Redfin (RDFN) on Wednesday, claiming the companies schemed to stop competition in the online housing rental market. The lawsuit follows a similar one filed by the FTC this week. The AGs are seeking an injunction to ban the two companies from allegedly scheming and proposes a possible restructuring of the businesses to maintain competition. “This agreement between Zillow and Redfin not to compete is illegal,” said Virginia Attorney General Jason Miyares. “Zillow paying Redfin to exit the market harms renters and property owners by taking away free market incentives to provide high-quality services that businesses and consumers rely on. My Office is suing to protect Virginians from this anticompetitive conduct.”
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