DOJ Lawsuit Against RealPage for Price Fixing

The U.S. Justice Department has initiated an antitrust lawsuit against RealPage Inc., a Texas-based real estate software company, alleging that its algorithms facilitate illegal coordination among landlords to inflate rental prices. Attorney General Merrick Garland stated that the software undermines competition, contributing to the rising rent crisis in the U.S., which has seen a 33% increase since March 2020. The lawsuit, filed in North Carolina, accuses RealPage of violating the Sherman Act by enabling landlords to share sensitive pricing information, effectively allowing them to collude on rental rates. RealPage has responded to the allegations, asserting that the claims lack merit and that its software has been used responsibly for years. The company argues that landlords are not obligated to accept the pricing recommendations generated by its algorithms. However, the Justice Department contends that the software creates a "self-reinforcing feedback loop" that discourages competition and leads to artificially high rents. The lawsuit is notable as it marks the first major case targeting algorithmic collusion in the rental market. The complaint has garnered support from eight state attorneys general, including those from California and Minnesota, who have expressed concerns over the impact of RealPage's practices on housing affordability. The DOJ's investigation into RealPage follows a ProPublica report that highlighted the company's role in exacerbating housing costs. As the Biden administration intensifies its antitrust enforcement efforts, this case underscores the growing scrutiny of technology's role in market manipulation.