On Friday, the U.S. Department of Justice filed an antitrust lawsuit against RealPage, a major real estate software provider. The case alleges that RealPage’s software played a critical role in allowing landlords across the country to collude and artificially inflate rental prices.
The lawsuit, backed by several states including North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee and Washington, alleges that RealPage facilitated a pricing conspiracy that negatively impacted the rental market, affecting millions of renters. It marks a significant case in which the role of an algorithm in pricing strategies is at the forefront of legal scrutiny.
Attorney General Merrick Garland said, “It is unfair that tenants are facing higher costs because of an unlawful collaboration fostered by technological manipulation.” This lawsuit highlights a growing concern about digital tools being used to undermine market competition and inflate prices illegally.
