U.S. accuses real-estate software company of illegally coordinating rent prices

NEW YORK, Aug. 23 (Xinhua) — The U.S. Justice Department and eight states on Friday sued real-estate software company RealPage, accusing the company of deploying a rent-setting algorithm that allows landlords to illegally coordinate price increases.
The civil suit, filed in the Middle District of North Carolina federal court, alleges that the company stifles competition through its algorithm and maintains an illegal monopoly over rent-setting software. RealPage commands an 80 percent market share in commercial revenue management software, the Justice Department said.
“The suit focuses on two of RealPage’s pricing systems that are used by landlords overseeing about 3 million units,” said The Wall Street Journal (WSJ) in its report about the move.
The action followed earlier lawsuits against the company filed by several state attorneys general and a class of tenants. The Justice Department’s complaint said RealPage’s price-setting algorithm gathers confidential data on rents from competing landlords, allowing the same real-estate companies to raise rents and illegally collude on prices.
“The lawsuit is a marquee example of the department’s efforts to deter companies from using software or artificial intelligence to signal to competitors how to set prices,” noted WSJ. “Companies have in the past been accused of fixing prices through express agreements among executives, but antitrust enforcers say third parties such as RealPage can now effectively enable that conduct.”
“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,” Attorney General Merrick B. Garland said in a statement. “We allege that RealPage’s pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents.” ■