DOJ targets RealPage over alleged rent price-fixing scheme

As reported by The New York Times.

The Justice Department filed an antitrust lawsuit against real estate software company RealPage on Friday, accusing the firm of enabling landlords to collude in raising rents across the U.S.

Why it matters:

It's the first major antitrust case where an algorithm is central to claims of price manipulation, marking a significant step in the government’s efforts to regulate tech's impact on the economy.

• The suit, joined by eight states, claims RealPage facilitated a price-fixing conspiracy that drove rents higher for millions of renters, beyond what market conditions would dictate.
• RealPage’s software, YieldStar, analyzes data from landlords and generates rent pricing suggestions, which, according to the lawsuit, often exceeded market rates.

What they're saying:

“Americans shouldn’t pay more in rent because a company found a new way to scheme with landlords,” Attorney General Merrick Garland said in a statement.

• RealPage denies the allegations. “We will vigorously defend ourselves,” said spokeswoman Jennifer Bowcock, adding that the software was “purposely built to be legally compliant.”

The big picture:

This lawsuit is part of a broader push by regulators to crack down on tech companies accused of anti-competitive practices. The DOJ and Federal Trade Commission have also targeted industry giants like Google, Meta, and Amazon.

• RealPage's role: The company’s software collects confidential rental data from landlords and suggests rent prices. The government argues this practice suppresses competition, inflating rents in markets across the country.

By the numbers:

• About 3 million rental units use RealPage’s software, and the company has access to data from over 16 million units nationwide, according to the complaint.
• RealPage claims its software helps landlords earn 3% to 7% more in rent.

Zoom out:

Algorithms are increasingly under scrutiny for their role in pricing decisions across industries, from ride-hailing services to hotel bookings. This case highlights the growing tension between technology and traditional antitrust laws.

• “Algorithms can be as effective as smoke-filled rooms for price fixing,” said Jonathan Kanter, head of the DOJ’s antitrust division.

The bottom line:

As housing costs soar, the case against RealPage could have significant implications for how rent is determined and regulated in the future.