Two Republican lawmakers have urged the Federal Trade Commission to examine the proposed Zillow acquisition of ShowingTime, citing competition concerns.
According to a letter published by Inman, Rep. Ken Buck (R-Colorado) and Sen. Mike Lee (R-Utah), asked the FTC to “closely examine competition issues in residential real estate” and not allow online real estate to “become overly consolidated in the hands of a dominant platform to the detriment of competition and consumers.” They specifically singled out Zillow as a company that “may raise competition issues.”
“Zillow has has made additional acquisitions and expanded to operate as broker, directly competing with the brokers and agents who rely on these tools for their businesses,” the letter goes on to state.
At the root of concern here appears to be the premise that Zillow can appraise a home, purchase it and then turn around and re-sell for a higher price—all within Zillow’s family of mutually owned companies.
You can read the full letter to the FTC via Inman by clicking here.