Justice Department Targets Landlords in Pricing Plan
WASHINGTON - The U.S. Department of Justice, in coordination with state attorneys general, has expanded its antitrust lawsuit against RealPage Inc., including the country's six largest landlords in allegations of a collective pricing scheme that potentially affects millions of renters. The modified complaint filed today alleges that Greystar Real Estate Partners LLC, LivCor LLC, Camden Property Trust, Cushman & Wakefield Inc., Willow Bridge Property Company LLC, and Cortland Management LLC conspired to artificially inflate rental prices.
These organizations manage over 1.3 million housing units across 43 states and the District of Columbia. The lawsuit claims that the landlords used sensitive competitive data and algorithmic software provided by RealPage to coordinate and maintain high rental prices. According to the Department of Justice, this practice hampers competition by keeping rents high and harms consumers.
The allegations detail various coordination methods, including direct communications among executives of competing firms, "calls" made to share sensitive information, participation in "user groups" organized by RealPage, and the sharing of details on how to adjust parameters within RealPage's pricing software. If proven, these practices represent a significant violation of antitrust laws designed to protect free market competition and prevent collusion.
In parallel with the modified complaint, a settlement proposal has been presented with Cortland. If approved by the court, Cortland will be prohibited from using competitors' data to inform its pricing models, among other restrictions, and must cooperate in ongoing investigations. The ruling mandates the appointment of a corporate monitor to oversee Cortland's compliance with these conditions.
The settlement will be subject to a 60-day public comment period under the Tunney Act, after which the court can finalize its decision. The lawsuit involves a total of ten states and commonwealth plaintiffs, including attorneys from California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee, and Washington.
This legal action highlights the Department of Justice’s commitment to enforcing antitrust laws and ensuring competitive practices in the housing market.