Justice Department Orders RealPage to Cease Competitor Pricing Coordination
The Justice Department’s Antitrust Division has taken significant steps against RealPage Inc., a company at the center of an antitrust case. The ongoing enforcement is aimed at curbing algorithmic coordination and competitive practices in the rental housing market across the United States. A proposed settlement has been filed to resolve the claims lodged against RealPage.
Impact on Rental Markets
The proposed settlement is designed to restore competition in rental markets for millions of American renters. Assistant Attorney General Abigail Slater emphasized the necessity for competing companies to make independent pricing decisions. The rise of algorithmic tools has intensified the need for robust antitrust enforcement.
RealPage’s Practices Under Scrutiny
RealPage develops revenue management software specifically for the conventional multifamily rental housing industry. Allegations against the company point to its reliance on nonpublic, sensitive information from landlords to dictate rental prices. The software has purportedly included features aimed at limiting price decreases and aligning prices among competitors.
- RealPage hosted meetings attended by competing property management firms, where sensitive pricing information was shared.
- Its revenue management system utilized active lease data, potentially compromising competition.
Proposed Consent Judgment Requirements
If the settlement is approved, RealPage will be mandated to take several corrective actions:
- Cease using competitors’ nonpublic data for setting rental prices.
- Limit model training to historical data older than 12 months.
- Avoid geographic pricing models narrower than an entire state.
- Remove features that restrict price decreases or align pricing among users.
- Stop conducting market surveys that collect sensitive information.
- Refrain from discussing market trends based on nonpublic data in company meetings.
- Accept a court-appointed monitor to ensure compliance with the settlement.
- Cooperate with ongoing lawsuits against property management firms that utilized RealPage’s software.
Next Steps in the Legal Process
The proposed consent judgment will be published in the Federal Register as required under the Tunney Act. Interested individuals can submit written comments regarding the settlement within 60 days of publication. Comments should be directed to Danielle Hauck, Acting Chief, Technology and Digital Platforms Section, Antitrust Division, at the U.S. Department of Justice.
Ultimately, the U.S. District Court for the Middle District of North Carolina will review public comments and may issue a final judgment if deemed in the public interest.
RealPage, headquartered in Richardson, Texas, has become a pivotal player in the scrutiny of competitive practices within the rental housing sector. The actions taken by the Justice Department highlight the growing concern over algorithmic pricing and information sharing that can distort market competition.
