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The Justice Department filed an antitrust lawsuit on Friday against real estate software company RealPage Inc., accusing the company of orchestrating an illegal scheme that enables landlords to coordinate and raise rental prices. The lawsuit, which was filed in collaboration with attorneys general from states including North Carolina and California, alleges that RealPage violated antitrust laws through its algorithm, which landlords use to obtain recommended rental prices for apartments.
According to Justice Department officials, the algorithm allows landlords to synchronize their pricing, thereby avoiding competition that would otherwise keep rents lower. The complaint cites a RealPage executive who reportedly said, “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.”
In a statement, Attorney General Merrick Garland asserted, “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 addition to the federal lawsuit, attorneys general in several states have separately sued RealPage, alleging an illegal price-fixing scheme tied to its algorithmic pricing software.
In a statement posted on its website in June, RealPage called the claims against the company “false and misleading,” arguing that its software “contributes to a healthier and more efficient rental housing ecosystem.” The company added that landlords are responsible for setting their own rent prices and are free to reject the recommendations provided by its software.
Earlier this year, the Justice Department also sued Apple in March and announced a sweeping lawsuit against Ticketmaster and its parent company, Live Nation Entertainment, in May. Antitrust enforcers have also launched investigations into the roles of Microsoft, Nvidia, and OpenAI in the artificial intelligence boom.
The Western Journal has reviewed this Associated Press story and may have edited it before publication to meet our editorial standards.
