U.S. Department of Justice Files Antitrust Lawsuit Against RealPage Inc.

 

The U.S. Department of Justice (DOJ) has launched an antitrust lawsuit against RealPage Inc., accusing the real estate software company of facilitating an illegal scheme that enables landlords to coordinate rental price increases. The lawsuit, filed on Friday in conjunction with attorneys general from North Carolina and California, alleges that RealPage's algorithm allows landlords to synchronize their pricing strategies, thereby stifling competition and driving up rents.

The complaint contends that RealPage's pricing algorithm undermines antitrust laws by enabling landlords to avoid competing with each other on rent, which could otherwise help keep prices lower. A quote from a RealPage executive included in the complaint highlights the company’s alleged stance on market competition: “There is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down.”

U.S. Attorney General Merrick Garland expressed strong condemnation of the practice, stating, “Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law.”

In response to the lawsuit, RealPage has rejected the claims as “false and misleading.” The company argues that its software aims to create a more efficient rental housing market and that landlords retain the discretion to set their own rent prices and disregard the software’s recommendations.

The lawsuit against RealPage is part of the Biden administration's broader push for rigorous antitrust enforcement. This effort includes recent high-profile actions such as the DOJ’s lawsuit against Apple in March and a major lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, in May. Investigations into the competitive practices of tech giants like Microsoft, Nvidia, and OpenAI are also underway.

The outcome of this legal action could have significant implications for the real estate industry and its use of technology in pricing strategies.