Minnesota Attorney General Keith Ellison announced today that he has joined the U.S. Department of Justice and a bipartisan coalition of attorneys general from California, Colorado, Connecticut, North Carolina, Oregon, Tennessee, and Washington in filing a civil antitrust lawsuit against RealPage Inc. The lawsuit alleges that RealPage's pricing algorithm unlawfully decreases competition among landlords in apartment pricing and monopolizes the market for commercial revenue-management software used to price apartments.
Attorney General Ellison stated that RealPage deprives renters of a fair market and the benefits of competition on apartment-leasing terms, affecting millions of Americans including Minnesotans. The lawsuit was filed in the U.S. District Court for the Middle District of North Carolina and claims that RealPage’s conduct violates Sections 1 and 2 of the Sherman Act.
The complaint alleges that RealPage contracts with competing landlords who agree to share nonpublic, competitively sensitive information about their apartment rental rates and other lease terms to train and run RealPage’s algorithmic pricing software. This software generates recommendations on rental pricing based on this shared data. In a free market, these landlords would otherwise compete independently to attract renters based on various leasing dimensions.
“Minnesotans and Americans everywhere increasingly understand that a big reason for inflation is corporate greed,” said Attorney General Ellison. “It’s hard enough to afford your life — and when illegal behavior makes it hard to afford the basics like housing and food while corporate profits skyrocket, I will step in to stop it.”
In November 2023, Attorney General Ellison joined DOJ in filing a similar lawsuit against Agri Stats for organizing anticompetitive information exchanges among broiler chicken, pork, and turkey processors.
“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” said United States Attorney General Merrick B. Garland. “We allege that RealPage’s pricing algorithm enables landlords to share confidential information and align their rents.”
The complaint cites internal documents from RealPage indicating its objective to maximize rental pricing at renters' expense. It also mentions how RealPage maintains its monopoly over commercial revenue management software by encouraging loyalty through measures such as "auto accept" functionality.
Attorney General Ellison encourages Minnesota consumers and businesses who wish to report concerns about antitrust issues to submit a report online via the Antitrust Report Form or call his office.