The Federal Trade Commission (FTC) and five states sued Zillow and Redfin on Wednesday in two separate lawsuits, which argue that the companies schemed to stop competition in the online housing rental market. 

Officials from New York, Arizona, Connecticut, Washington and Virginia jointly filed the lawsuit Wednesday over a February deal in which Zillow "paid Redfin $100 million to shut down its apartment rental advertising business and transfer its clients to Zillow," New York Attorney General Letitia James' office announced in a press release. 

"This agreement is nothing more than an end run around competition that insulates Zillow from head-to-head competition on the merits with Redfin for customers advertising multifamily buildings," the lawsuit reads, adding that the agreements violate federal antitrust laws and may harm renters. 

The lawsuit also claims that Redfin fired hundreds of workers and then worked with Zillow to rehire some of them.

"Millions of New Yorkers rely on online apartment listings to find an affordable and safe place to live," James said in a statement. "Zillow's attempt to shut down its competition could drive up costs for advertisers and leave renters with fewer options when searching for a new apartment."