Today, Attorney General Ellen Rosenblum joined the US Department of Justice (USDOJ) in an antitrust enforcement action against RealPage Inc., filed in US District Court for the Middle District of North Carolina.
Headquartered in Richardson, Texas, RealPage offers property management software services to help owners and managers of rental properties operate their rental communities. RealPage collects nonpublic, competitively sensitive data from its customers to train its pricing algorithms that then provide floor plan price recommendations and unit-level pricing recommendations.
“At a time when housing affordability is a top concern for Oregonians – and for countless Americans beyond our state’s borders – the issues of fairness and competition could not be more critical,” said Attorney General Rosenblum. “RealPage’s use of its AI pricing algorithm effectively acts as a hub for property managers and landlords to share confidential, competitively sensitive information and to engage in a pricing alignment scheme to avoid competition. It undermines a fair rental market and constitutes a violation of Oregon and federal antitrust laws (the Sherman Act).”
Pricing algorithms represent new technology and are rapidly spreading to other industries. The suit names specific geographic markets with RealPage subscription penetration exceeding 30 percent. Oregon has at least two such neighborhoods – Aloha/West Beaverton and Central Portland – totaling approximately 54,000 units.
The complaint focuses on RealPage’s actions and seeks to enjoin RealPage from continuing to engage in its anticompetitive practices. The complaint does not name property managers or owners as defendants and does not seek damages on behalf of tenants. Oregon and the USDOJ are joined by California, Colorado, Connecticut, Minnesota, North Carolina, Tennessee, and Washington.