DOJ, RealPage Settle Rental Price-Fixing Case
The Department of Justice (DOJ) and RealPage, a Texas-based software company, have reached a significant settlement regarding allegations of price-fixing in major rental markets across the United States. The core of the issue involved algorithmic software that RealPage provided to landlords, which prosecutors claimed facilitated unlawful price increases in violation of antitrust laws.
Settlement Details and Restrictions
The settlement requires RealPage to cease the utilization of software that relies on nonpublic, sensitive data from landlords to suggest rental prices. Additionally, the company will no longer conduct market surveys to collect such information and is prohibited from discussing pricing strategies during property manager meetings.
- RealPage must redesign software features that restrict rent decreases.
- A court-appointed monitor will oversee compliance with the settlement.
- The company is obligated to assist prosecutors in ongoing lawsuits against property managers using its software.
Statements from Officials
The DOJ stated that this settlement aims to restore fair competition in rental markets for millions of renters. Abigail Slater, Assistant Attorney General, emphasized the importance of independent pricing decisions among competitors, highlighting the necessity of rigorous antitrust enforcement amid the rise of algorithmic tools.
RealPage’s CEO, Dirk Wakeham, commented that the settlement brings much-needed clarity and allows the firm to focus on innovation while complying with legal standards. The agreement does not include any admissions of wrongdoing from RealPage and imposes no financial penalties.
Background and Context
This development follows a 2022 ProPublica investigation which revealed that RealPage’s practices could lead to cartel-like behavior among landlords. The DOJ subsequently filed an antitrust lawsuit against RealPage in 2024, accusing the company and six major landlords, including Greystar, of unlawful collaboration to escalate rent prices.
- Landlord reports indicated significant rent increases following the implementation of RealPage’s software.
- The litigation is supported by multiple state attorneys general, including California’s.
Legislative efforts have emerged, with senators holding hearings to potentially ban similar algorithms and cities like San Francisco and Minneapolis moving to restrict their use in determining rents.
Implications of the Settlement
The actions taken by the DOJ signify a shift towards a more robust examination of antitrust violations associated with technology in the rental sector. As algorithmic practices grow, authorities recognize the evolving landscape of collusion, moving beyond traditional methods to safeguard market integrity.
The proposed settlement with RealPage is viewed as a pivotal moment in the ongoing battle against unlawful rental pricing practices driven by data-sharing and technology. The outcome of this case may set crucial precedents for future regulatory actions in the housing market.
