DOJ Sues RealPage Over Alleged Antitrust Violations to Hike Rent
The Department of Justice, in collaboration with attorneys general from North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington, has filed an antitrust lawsuit against RealPage Inc. The lawsuit accuses the property management software company of enabling landlords to share sensitive pricing information and artificially raise rental prices through its algorithmic pricing software. The DOJ alleges that this practice violates antitrust laws by limiting competition among landlords.
According to the complaint, RealPage's software facilitates the sharing of nonpublic, competitively sensitive information about rental rates, which the algorithm then uses to generate pricing recommendations. This, the DOJ argues, allows landlords to coordinate pricing and avoid competition that would naturally keep rental prices lower. In response, RealPage has denied the allegations, describing the claims as "false and misleading" and asserting that their software promotes a healthier and more efficient rental housing market. The DOJ has scheduled an antitrust announcement to address the case further.
