Assistant Attorney General Jonathan Kanter delivered remarks on August 23, 2024, regarding the Justice Department's lawsuit against RealPage for an algorithmic pricing scheme that allegedly harms millions of American renters.
"Renters deserve the benefits of vigorous competition," Kanter stated. "In prosperous times, that competition should limit rent hikes; in harder times, competition should bring down rent, making housing more affordable."
Kanter accused RealPage of disrupting natural competitive forces. "RealPage has built a business out of frustrating the natural forces of vigorous competition," he said. According to Kanter, RealPage's practices have led to increased profits for landlords and higher rents for tenants.
The lawsuit aims to combat what Kanter described as a "rising tide" of high rents driven by RealPage's software. He cited statements from RealPage executives to illustrate their approach: “driv[e] every possible opportunity to increase price even in the most downward trending or unexpected conditions,” and encouraging landlords to “[e]liminate concessions.”
Kanter emphasized that independent decision-making by landlords should determine rental prices rather than RealPage’s algorithms. He also criticized RealPage’s claim of having no true competitors in revenue management solutions, suggesting this indicates monopolistic behavior.
"The time has come to stop this illegal conduct," Kanter declared. He thanked the Antitrust Division’s team for their extensive work over nearly two years on this case.
Kanter highlighted how modern technologies like algorithms and artificial intelligence can facilitate anti-competitive practices more effectively than traditional methods. "Our lawsuit demonstrates that modern-day wrongdoers cannot hide behind software algorithms and artificial intelligence to violate the law," he asserted.
He concluded by emphasizing the importance of antitrust laws in addressing these issues today as they did when first enacted: "A restraint of trade is still a restraint of trade and monopolization is still monopolization."
The Justice Department is joined by Attorneys General from North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington in this effort.
"We are honored to stand together to protect competition on behalf of American renters," Kanter said.
Thank you.
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