DOJ Targets RealPage in Landmark Antitrust Lawsuit

The Justice Department has filed an antitrust lawsuit against real estate software company RealPage Inc., accusing it of implementing an illegal scheme that lets landlords coordinate rental price hikes. The lawsuit alleges RealPage's algorithm enables price-fixing, making rents artificially high. RealPage denies the claims, calling them baseless.

The Justice Department has filed an antitrust lawsuit against real estate software company RealPage Inc., asserting that the firm orchestrates an illegal scheme enabling landlords to coordinate and inflate rental prices. This lawsuit, supported by attorneys general from states like North Carolina and California, accuses RealPage of anti-competitive practices through its rent-recommendation algorithm, which ostensibly allows landlords to synchronize their pricing strategies.

Attorney General Merrick Garland emphasized that Americans shouldn't bear the brunt of increased rent due to corporate misconduct, labeling the scheme as illegal. RealPage, on its part, has refuted the allegations, stating that the Justice Department's claims lack merit and won't aid in making housing more affordable. The company expressed disappointment over the lawsuit, insisting that their technology promotes, rather than stifles, competition.

Prosecutors, however, argue that RealPage's use of confidential, client-shared data for setting rental prices constitutes illegal price collusion. This form of digital cartel behavior was highlighted in a 2022 ProPublica investigation, which linked RealPage's practices to sharp rises in housing costs. Consequently, Democratic lawmakers and leaders, including Sen. Amy Klobuchar and Vice President Kamala Harris, have called for stringent measures against such algorithm-driven price-fixing schemes.

This lawsuit epitomizes the Biden administration's robust antitrust agenda, following recent actions against tech giants like Apple, Ticketmaster, Microsoft, Nvidia, and OpenAI.

(With inputs from agencies.)