New limits for a rent algorithm that prosecutors say let landlords drive up prices
abcnews.go.com

... Real estate software company RealPage has agreed to stop sharing nonpublic information between landlords as part of a settlement with the Department of Justice.

Landlords could no longer rely on rent-pricing software to quietly track each other's moves and push rents higher using confidential data, under a settlement between RealPage Inc. and federal prosecutors to end what critics said was illegal "algorithmic collusion."

The deal announced Monday by the Department of Justice follows a yearlong federal antitrust lawsuit, launched during the Biden administration, against the Texas-based software company. RealPage would not have to pay any damages or admit any wrongdoing. The settlement must still be approved by a judge.

RealPage software provides daily recommendations to help landlords and their employees nationwide price their available apartments. The landlords do not have to follow the suggestions, but critics argue that because the software has access to a vast trove of confidential data, it helps RealPage's clients charge the highest possible rent.

"RealPage was replacing competition with coordination, and renters paid the price," said DOJ antitrust chief Gail Slater, who emphasized that the settlement avoided a costly, time-consuming trial. ...