RealPage has repeatedly denied any allegations of antitrust violations, going so far as to publish a six-page digital pamphlet that it claims tells the “real story” about its products, along with an extensive FAQ page on a dedicated public policy website . The company did not immediately respond to a request for comment. “Attacks against industry revenue management are based on patently false information,” reads one section of that site. “RealPage income management software benefits both housing providers and residents.”
“We are disappointed that after several years of learning and cooperating on the antitrust issues surrounding RealPage, the Department of Justice has chosen this moment to launch a lawsuit that seeks to buy out the pro-competitive technology that has been used responsibly for years,” said Jennifer Bowcock, senior vice president of communications and creative at RealPage, in an emailed statement. “RealPage’s revenue management software is purpose-built to comply with the law, and we have a long history of constructively working with the DOJ to demonstrate that.”
The DOJ disagrees. “Algorithms do not exist in a lawless zone,” Monaco said at a news conference to discuss the case. “Teaching a machine to break the law is still breaking the law.”
In this case, the complaint alleges that these algorithms consistently drive up rental prices. “RealPage’s software tends to maximize price increases, minimize price decreases, and maximize landlords’ pricing power,” the DOJ said in a press release. RealPage also doesn’t just recommend prices; in many cases it actively sets them.
“RealPage is actively monitoring landlords’ compliance with these recommendations,” said US Attorney General Merrick Garland at today’s press conference. “A large number of landlords effectively agree to outsource their pricing decisions to RealPage by using an ‘auto-accept’ setting that effectively allows RealPage to determine the price a tenant will pay.”
The Justice Department also alleged that RealPage created a “self-reinforcing feedback loop” with its data acceptance and pricing recommendation structure that also gave it an alleged monopoly in the apartment revenue management software industry. Any competitor who plays by the rules, the DOJ argues, is at a distinct disadvantage.
The Justice Department has spent the past few years recruiting technologists and data scientists, allowing them to better “interrogate the code,” as many officials describe the investigative process. While this is the first major case of algorithmic collusion, DOJ officials suggest it is far from the last.
Update 08/23/24 4:34 PM ET: This story has been updated with a statement from RealPage.
