Justice Department Charges RealPage With Violating Antitrust Laws by Devising Plan to Raise Rents

WASHINGTON — The Justice Department filed an antitrust complaint Friday against real estate software company RealPage Inc., accusing it of an illegal scheme that allowed landlords to coordinate to raise rental prices.

The lawsuit, filed alongside attorneys general from states including North Carolina and California, alleges the company violated antitrust laws through its algorithm that landlords use to arrive at recommended rental prices for apartments.

The algorithm allows landlords to align their prices and avoid competition that would drive down rents, Justice Department officials said. The complaint quotes a RealPage executive as saying, “It’s more beneficial for everyone to be successful than to try to compete with each other in a way that actually keeps the entire industry down.”

In a statement, Attorney General Merrick Garland said: “Americans should not have to pay more rent because a company found a new way to conspire with landlords to break the law.”

Attorneys general from several states have separately sued RealPage, alleging illegal price-fixing involving its algorithmic pricing software.

In a statement posted on its website in June, RealPage called the allegations against the company “false and misleading” and maintained that its software “actually contributes to a healthier and more efficient rental ecosystem.” RealPage said landlords decide their own rental prices and are free to reject the recommendations provided by its software.

It is the latest example of the Biden administration’s aggressive anti-monopoly policy.

The Justice Department sued Apple in March and in May has announced a major legal action against Ticketmaster and its owner, Live Nation Entertainment. The antitrust authorities have also opened investigations on the roles played by Microsoft, Nvidia and OpenAI in the rise of artificial intelligence.