The Justice Department filed an antitrust lawsuit against RealPage, a property management software provider, alleging collusion among landlords to inflate rents for millions of Americans. RealPage and competitors engaged in a price-fixing scheme by sharing nonpublic information used by RealPage’s algorithmic pricing software to set rent prices. The lawsuit claims RealPage monopolized the market through its revenue management software, impacting renters nationwide. The DOJ, along with several state attorneys general, filed the lawsuit under the Sherman Act.
Attorney General Merrick B. Garland stated that Americans should not have to pay more in rent due to companies scheming with landlords to break the law. The Justice Department alleges that RealPage’s pricing algorithm enables landlords to share sensitive information and align their rents, violating antitrust laws. Deputy Attorney General Lisa Monaco emphasized that training a machine to break the law is still illegal, and the DOJ will take action to ensure accountability for anticompetitive conduct fueled by technology. RealPage denies the allegations and insists that customers decide their own rent prices and can reject the algorithm’s recommendations.
The lawsuit comes at a time when Americans are struggling to afford housing and other necessities, with high housing costs contributing to persistent inflation. Assistant Attorney General Jonathan Kanter stated that RealPage is making it easier for landlords to coordinate rent increases, impacting millions of renters across the country. RealPage’s revenue management software is designed to maximize profits for landlords, described as “driving every possible opportunity to increase price.” A landlord praised RealPage’s software for using proprietary data to suggest rents, which the lawsuit describes as classic price fixing.
RealPage defended its product, claiming it is legally compliant and uses data responsibly. The company stated that customers have control over rent prices and can reject the algorithm’s recommendations. The lawsuit aims to make housing more affordable by challenging RealPage’s market dominance and ensuring competition determines rent prices. The lawsuit alleges that RealPage violated sections 1 and 2 of the Sherman Act by monopolizing the market through its revenue management software, impacting renters across the U.S. The DOJ and several state attorneys general are taking action to address antitrust violations in the property management software industry.
