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• Using competitors’ competitively sensitive data to train or run any pricing model.
• Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor.
• Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.

Real-World Impact on Renters

From my experience in covering legal and insurance matters, such a far-reaching antitrust suit suggests major implications for renters nationwide. If proven true, the allegations indicate that apartment dwellers may have overpaid for years, caught in a market shaped less by natural supply-and-demand and more by a carefully orchestrated pricing strategy.

While it’s uncertain how soon any potential relief might reach tenants, the mere act of challenging these alleged rent-fixing practices signals a turning point for housing rights. It’s not every day you see the DOJ take such a direct shot at algorithms used behind the scenes.

As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530

At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.

Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington. Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management.

Hyperlinks:

Proposed Final Judgment - US et al. v. RealPage Inc.pdf

Amended Complaint - U.S. et al. v. RealPage Inc..pdfFor more on my analysis and
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