U.S. Expands RealPage Price-Fixing Lawsuit to Include Six Big Landlords

The U.S. Department of Justice (DOJ) and 10 state attorneys general have expanded an antitrust lawsuit against RealPage, a Dallas-based real estate software platform, to include six of the nation's largest landlords. The lawsuit alleges that these landlords participated in an unlawful scheme to decrease competition among apartment pricing, harming millions of American renters. The landlords named in the suit are Greystar Real Estate Partners LLC, Blackstone's LivCor LLC, Camden Property Trust, Cushman & Wakefield Inc and Pinnacle Property Management Services LLC, Willow Bridge Property Company LLC, and Cortland Management LLC.

The amended complaint alleges that these landlords actively participated in a scheme to set their rents using each other's competitively sensitive information through common pricing algorithms. Along with using RealPage's anticompetitive pricing algorithms, these landlords coordinated through various means, including direct communication with competitors, conducting "call arounds," participating in "user groups" hosted by RealPage, and sharing information about parameters in RealPage's software.

The DOJ also announced a proposed consent decree with landlord Cortland, which would require it to cooperate with the government, stop using competitors' sensitive data to set rents, and stop using the same algorithm as its competitors without a corporate monitor. The consent decree, along with a competitive impact statement, will be published in the Federal Register, and any person may submit written comments concerning the proposed consent decree during a 60-day comment period.

The lawsuit seeks to end RealPage's and the landlords' practice of putting profits over people and make housing more affordable for millions of people across the country. The complaint alleges that RealPage's pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents, ultimately harming renters.



The lawsuit comes as Americans struggle to afford housing, with rents skyrocketing in recent years. According to a White House report, Dallas-Fort Worth is the second-largest market for use of RealPage's rent recommendation software, increasing the price of an apartment by about $132 a month.

The lawsuit also highlights the growing concern over the use of algorithms in pricing strategies, as companies may use these tools to coordinate prices and stifle competition. The DOJ's action serves as a warning to other companies that such practices will not be tolerated and could result in legal consequences.

The expanded lawsuit against RealPage and the six major landlords has significant implications for the competitive landscape in the rental market. By increasing scrutiny and accountability, reducing coordination among landlords, potentially breaking up monopolies, encouraging independent decision-making, and potentially leading to lower rents for tenants, the lawsuit aims to create a more competitive and fair rental market for consumers.