DOJ Forces RealPage to Halt AI-Driven Price Collusion Tools

Thoma Bravo LLC's RealPage Inc. has reached a proposed settlement with the U.S. Department of Justice over antitrust allegations. The company was accused of colluding to fix rental prices by sharing non-public data among landlords. Under the terms of the deal, RealPage will stop enabling such data exchanges and halt the use of that information in its AI-driven pricing models.

Assistant Attorney General Abigail Slater of the DOJ's Antitrust Division emphasized the importance of independent pricing decisions in competitive markets. She added that the DOJ remains committed to enforcing antitrust laws in the context of algorithmic tools. The proposed settlement now awaits approval from a federal judge in North Carolina.

The case is one of the first high-profile antitrust actions to address the role of artificial intelligence and big data in market manipulation. Critics had long argued that RealPage's software allowed landlords to synchronize pricing in ways that undermined fair competition. The Justice Department's focus on AI tools signals a broader regulatory shift.

The Terms of the Settlement

RealPage's agreement with the DOJ includes specific commitments to curb the sharing of pricing data between landlords. The company will also stop using such data to train its AI models, which previously helped landlords adjust rental rates in real time. These measures aim to prevent a situation where competitors effectively coordinate pricing through a third-party platform.

The settlement does not include financial penalties, but it imposes operational restrictions. RealPage, which has faced ongoing scrutiny from state and federal regulators, must now restructure how its software operates in the rental market.

Reactions and Remaining Legal Challenges

Assistant Attorney General Abigail Slater framed the settlement as a win for antitrust enforcement. "We will remain at the forefront of vigorous antitrust enforcement," she said, highlighting the DOJ's stance on emerging technologies in market practices.

However, a group of state attorneys general who filed the lawsuit alongside the DOJ did not endorse the deal. Their absence raises questions about whether the settlement fully addresses concerns about anticompetitive behavior.

What This Means for Investors

The settlement reflects a regulatory trend toward scrutinizing data-sharing practices in the software industry. For RealPage, the deal may bring legal clarity but could also limit its competitive edge in a market increasingly driven by AI and analytics.

Investors are likely to monitor whether RealPage can adapt its business model to the new restrictions. The company remains a dominant player in property management software, and its ability to innovate without relying on shared pricing data will be closely watched.

The DOJ's action could set a precedent for how regulators treat algorithmic tools in antitrust cases, especially as AI becomes more embedded in business operations.