"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 reached a settlement with the Department of Justice in a federal antitrust matter concerning alleged "algorithmic collusion" in rent-pricing software. The company will not pay damages or admit wrongdoing, and the settlement requires court approval. RealPage's software had provided daily pricing recommendations using extensive nonpublic landlord data, which critics said enabled coordinated rent increases. Under the settlement, the software may no longer use real-time nonpublic data to determine price recommendations; only nonpublic data at least one year old may be used to train algorithms. DOJ said this change will restore more market-based competition in local housing markets.
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