According to the complaint, the ordinance bans the use of publicly available data for rental pricing analysis—even extending to calculations as simple as an Excel spreadsheet input. Yet, it does not prohibit real estate groups from publishing their own rental market analyses, an inconsistency that RealPage highlights as evidence of discrimination against technology-driven pricing tools.
Free Speech or Market Manipulation?
The city of Berkeley contends that AI-driven pricing algorithms have exacerbated the housing crisis by allowing landlords to align rents artificially, thereby eliminating competition. RealPage rejects this claim, arguing that no evidence supports the notion that its software causes rent inflation or market manipulation.
“There are countless less burdensome alternatives to regulating rental prices—such as increasing housing supply or enforcing antitrust laws—rather than imposing a blanket ban on a lawful and beneficial technology,” RealPage states in its lawsuit.
Allegations of Misinformation and Political Pressure
Beyond constitutional concerns, RealPage alleges that the ordinance is the result of a deliberate misinformation campaign spearheaded by the American Economic Liberties Project (AELP), a nonprofit advocating for stronger antitrust enforcement.
