Deputy Attorney General Lisa Monaco delivered remarks on August 23, 2024, regarding the Justice Department's lawsuit against RealPage for an alleged algorithmic pricing scheme. This scheme is said to harm millions of Americans by undermining competition in the rental housing market.
Monaco emphasized the Justice Department's commitment to holding serious wrongdoers accountable. "Since the beginning of this administration, our approach to corporate misconduct across the Justice Department has been simple, straightforward, and relentless," she stated.
The complaint against RealPage illustrates this strategy. Monaco noted that laws promoting healthy competition have been in place for over a century and are essential for a stable market economy. She likened competition to a strong foundation supporting a house, warning that when competition is undermined, it compromises stability and security.
According to the complaint, RealPage uses technology to undermine competition in the rental market by feeding sensitive data into a sophisticated algorithm. This process allegedly allows systematic coordination of rental housing prices in violation of antitrust laws.
"Healthy competition in the rental housing market requires two key ingredients," Monaco explained. "The market must be dictated by open and honest competition among landlords. And renters must be able to negotiate prices with landlords — without the specter of collusion."
RealPage is accused of selling software that uses an algorithm to drive pricing based on confidential landlord data. This system reportedly prevents tenants from negotiating fair deals as landlords avoid undercutting each other.
Monaco made it clear that algorithms do not operate outside legal boundaries: "Our laws will always apply to the people behind the machines and the companies behind the algorithms." She stressed that existing antitrust laws provide a firm foundation for addressing technology-enabled crimes involving artificial intelligence and machine learning.
"Training a machine to break the law is still breaking the law," she asserted. "Price coordination using AI is still price coordination. And monopolization advanced by an algorithm is still monopolization."
Monaco thanked Assistant Attorney General Jonathan Kanter and members of the Antitrust Division for their efforts in promoting healthy competition and protecting consumers in this critical market.
"No company or individual is above the law — and today’s action, once again, makes that crystal clear," she concluded before inviting Acting Associate Attorney General Mizer to speak.