US sues software company RealPage for alleged rent hiking scheme
The U.S. Department of Justice has filed an antitrust lawsuit against RealPage Inc., a real estate software company, accusing it of facilitating an illegal scheme that enables landlords to coordinate rental price hikes. The lawsuit, supported by attorneys general from several states, including North Carolina and California, claims that RealPage's algorithm allows landlords to align their rent prices, effectively reducing competition and artificially inflating rents.
The complaint references a statement from a RealPage executive suggesting that it is more beneficial for the industry if landlords do not compete against each other on price. U.S. Attorney General Merrick Garland condemned the practice, stating that Americans should not have to pay higher rents because of a company's unlawful collusion with landlords.
RealPage, however, has denied the allegations, stating that the claims are "false and misleading." The company argues that its software contributes to a healthier rental housing market and that landlords have the autonomy to set their own rent prices, with the option to disregard the software's recommendations.
This lawsuit is part of a broader trend of aggressive antitrust enforcement under the Biden administration. The Department of Justice has also pursued actions against major companies like Apple, Ticketmaster, and Live Nation Entertainment, and is investigating the roles of tech giants such as Microsoft, Nvidia, and OpenAI in the artificial intelligence sector.
