Antitrust Lawsuit Against RealPage: Aiming to Address Rent Hikes
Context of the Antitrust Lawsuit
The Justice Department has initiated an antitrust lawsuit against RealPage Inc., alleging that the company's software enables landlords to coordinate rental price increases unlawfully. This development is crucial as it highlights ongoing concerns about rent affordability in the U.S., especially following significant spikes in 2021 and 2022.
Details of the Allegations
- The lawsuit utilizes an algorithm that helps landlords determine recommended rental prices.
- RealPage is accused of facilitating price alignment that stifles competition.
- Various states, including North Carolina and California, are joining the Justice Department in this initiative.
According to Attorney General Merrick Garland, the risks posed by RealPage's practices contribute directly to higher rents. He proclaimed, “Americans should not have to pay more in rent simply because a company has found a new way to scheme with landlords to break the law.”
Reactions from RealPage
In light of these allegations, RealPage has vehemently defended its practices, stating that the claims are “devoid of merit” and claiming their software has been useful for many years without breaking antitrust laws. Expert opinions suggest that the technology in question fosters competition rather than undermines it.
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.