On Friday, the U.S. Justice Department and eight attorneys general filed a lawsuit against RealPage, a company specializing in property management software
The lawsuit alleges that RealPage assisted apartment and building administrators in conspiring to increase unit prices nationwide.
The Richardson, Texas-based organization is accused of contracting with rival landlords to acquire information regarding their rates and lease terms to train RealPage’s recommendation algorithms. This has reduced competition among property owners who rely on the company’s recommendations regarding pricing and other terms.
It is the Department of Justice’s inaugural significant algorithmic collusion case and coincides with a 33% increase in rent in the United States since March 2020, as reported by Zillow.
According to the lawsuit, RealPage, acquired by Thoma Bravo, a private equity firm, in 2021 for $10.2 billion, controls 80% of the commercial revenue management software market in the United States for conventional multi-family housing rentals. The organization refutes any allegations of misconduct.
