The U.S. Department of Justice (DOJ) filed an antitrust lawsuit on Friday accusing RealPage, a provider of revenue management software, of enabling residential landlords to fix rental prices. The suit, filed in North Carolina federal court, alleges that RealPage’s software collects and shares data among landlords, helping them coordinate rent increases through algorithmic pricing recommendations.
Justice Department Sues RealPage : DOJ’s Allegations
The DOJ claims that RealPage facilitated unlawful information sharing among competing landlords, allowing them to make pricing decisions that would not occur in a competitive environment. The lawsuit accuses the software company of violating the Sherman Antitrust Act by allowing landlords to collaboratively adjust rent prices, leading to artificially high rates that harm renters.
Attorney General Merrick B. Garland likened the scheme to modern-day price-fixing, stating that, “Today, it looks like landlords using mathematical algorithms to align their rents.” Garland emphasized that antitrust laws still apply to such behavior, despite the use of new technology.
Impact on Renters
The lawsuit claims that RealPage’s algorithms have driven up rents across the country, forcing tenants to pay more for housing. Jonathan Kanter, head of the DOJ’s Antitrust Division, said the company’s practices have hurt renters by limiting competition, leading to higher rent prices and placing financial strain on families. He criticized RealPage’s “a rising tide raises all ships” mantra, stating that while it benefits landlords, renters are left struggling to afford essential living expenses.
