The Justice Department has taken legal action against real estate software company RealPage Inc., accusing it of engaging in an antitrust violation that enables landlords to coordinate rent increases. The lawsuit, filed in conjunction with attorneys general from various states, including North Carolina and California, alleges that RealPage's algorithm facilitates collusion among landlords to set rental prices.
According to Justice Department officials, the algorithm developed by RealPage allows landlords to align their pricing strategies, thereby stifling competition that would typically keep rental rates in check. The complaint cites a RealPage executive who purportedly stated that fostering collective success among landlords is preferable to engaging in competitive practices that could suppress the industry as a whole.
Attorney General Merrick Garland emphasized that Americans should not be subjected to inflated rental costs due to companies engaging in unlawful activities with landlords. Several states have also filed separate lawsuits against RealPage, accusing the company of orchestrating an illegal price-fixing scheme through its algorithmic pricing software.
In response to the allegations, RealPage has refuted the claims, asserting that its software enhances the efficiency of the rental housing market. The company maintains that landlords retain autonomy over setting rent prices and are not obligated to adhere to the recommendations provided by the software.
This legal action is part of the Biden administration's broader efforts to enforce antitrust laws rigorously. Earlier this year, the Justice Department initiated legal proceedings against tech giant Apple and entertainment company Ticketmaster, alleging anticompetitive behavior. Additionally, investigations have been launched into the practices of companies such as Microsoft, Nvidia, and OpenAI in relation to the artificial intelligence sector.
