RealPage's Algorithmic Pricing Practices Under Fire: Thoma Bravo's Antitrust Battle
Core Allegations Against RealPage
The US Department of Justice (DoJ) has launched a civil antitrust lawsuit against RealPage, a software company owned by Thoma Bravo, accusing it of enabling landlords to fix rent prices through algorithmic collusion. Landlords allegedly shared sensitive information on rental rates with RealPage, which fueled its pricing software.
Impact on Renters
The DoJ alleges that this conduct affected approximately 3 million rental units, leading to higher rents for American tenants. U.S. Attorney General Merrick Garland emphasized that this practice undermines competitive practices in the rental market.
Algorithmic Concerns
Federal regulators have expressed deep concerns about the role of algorithms in manipulating prices, asserting that illegal outcomes remain prohibited regardless of the technology used.
Current Developments
As the legal battle unfolds, the scrutiny on algorithmic practices in the real estate sector is intensifying, with additional states joining the lawsuit.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.