Attorney General William Tong, in collaboration with the United States Department of Justice and Attorneys General from North Carolina, California, Colorado, Minnesota, Oregon, Tennessee, and Washington, has filed a civil antitrust lawsuit against RealPage Inc. The lawsuit alleges that RealPage engaged in practices designed to reduce competition among landlords in apartment pricing and monopolize the market for commercial revenue management software used by landlords to price apartments. Filed in the U.S. District Court for the Middle District of North Carolina, the suit claims violations of Sections 1 and 2 of the Sherman Act.
The complaint states that RealPage contracts with competing landlords who share nonpublic, competitively sensitive information about their rental rates and lease terms. This data is used to train RealPage’s algorithmic pricing software, which then provides rental pricing recommendations based on this shared information. In a competitive market, these landlords would typically compete independently on various leasing terms.
“We know that renters across Connecticut and our country are already struggling to afford high rent prices. RealPage allegedly used their algorithm to take advantage of vulnerable renters by restricting competition,” said Attorney General Tong. “I thank Attorney General Garland and the Justice Department for their partnership in aggressively defending renters and consumers against such egregious antitrust violations.”
U.S. Attorney General Merrick B. Garland added: “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.”
The complaint references internal documents and testimony from RealPage and commercial landlords highlighting efforts to maximize rental pricing at renters' expense:
- RealPage described its software as aiming at maximizing prices for landlords.
- A RealPage executive noted that avoiding competition benefits all parties involved.
- Another executive explained how competitor data could justify higher rent increases.
- A landlord referred to RealPage's product as "classic price fixing."
The lawsuit contends that these practices harm local rental markets across the U.S., leading to higher rents due to minimized price decreases and reduced renter concessions.
Additionally, it is alleged that RealPage has unlawfully maintained its monopoly over commercial revenue management software for multi-family dwellings in the U.S., holding approximately 80% market share. The company’s practices create a feedback loop reinforcing its market dominance.
Assistant Attorney General Julián Quiñones and Deputy Associate Attorney General/Chief of the Antitrust Section Nicole Demers supported Attorney General Tong in this matter.