Justice Department Requires RealPage to End the Sharing of Competitively Sensitive Information and Alignment of Pricing Among Competitors

The Justice Department’s Antitrust Division filed a proposed settlement today to resolve the United States’ claims against RealPage Inc. as part of its ongoing enforcement against algorithmic coordination, information sharing, and other anticompetitive practices in rental housing markets across the country. The proposed settlement would help restore free market competition in rental markets for millions of American renters.

“Competing companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division.

RealPage is a provider of commercial revenue management software and services for the conventional multifamily rental housing industry. As alleged in Plaintiffs’ complaint, RealPage’s revenue management software has relied on nonpublic, competitively sensitive information shared by landlords to set rental prices. RealPage’s software has also included features designed to limit rental price decreases and otherwise align pricing among competitors. In addition, RealPage has hosted meetings attended by competing property management companies where competitively sensitive information was shared.

If approved by the court, the proposed consent judgment would require RealPage to:

• Cease having its software use competitors’ nonpublic, competitively sensitive information to determine rental prices in runtime operation;
• Cease using active lease data for purposes of training the models underlying the software, limiting model training to historic or backward-looking nonpublic data that has been aged for at least 12 months;
• Not use models that determine geographic effects narrower than at a state level, which is broader than the markets alleged in the complaint;
• Remove or redesign features that limited price decreases or aligned pricing between competing users of the software;
• Cease conducting market surveys to collect competitively sensitive information;
• Refrain from discussing market analyses or trends based on nonpublic data, or pricing strategies, in RealPage meetings relating to revenue management software;
• Accept a court-appointed monitor to ensure compliance with the terms of the consent judgment; and
• Cooperate in the United States’ lawsuit against property management companies that have used its software.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlement within 60 days following the publication to Danielle Hauck, Acting Chief, Technology and Digital Platforms Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 7050, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.

RealPage is a provider of revenue management software and services headquartered in Richardson, Texas.