this Ministry of Justice Eight states on Friday accused software company RealPage of illegally scheming to undermine competition among landlords and create a monopoly that harmed millions of renters.
The Justice Department said in a statement that RealPage “allowed landlords to manipulate, distort and subvert market forces.” civil complaint In the U.S. District Court for the District of North Carolina.
“At its core, RealPage is an algorithmic intermediary that collects, combines and exploits landlords’ competitively sensitive information,” the antitrust lawsuit states.
“In doing so, it enriches itself and compliant landlords at the expense of tenants who pay high rents and honest businesses that would otherwise compete,” the DOJ claimed.
Attorney General Merrick Garland was more blunt at a press conference Friday morning: “Everyone knows rents are too high, and we claim that’s one of the reasons why.”
The lawsuit marks the first time the government has accused a company of using mathematical algorithms to systematically subvert the rules of free market competition.
“Antitrust laws will not become obsolete simply because competitors find new illegal ways to act in concert,” Garland said.
“Americans should not have to pay more rent just because a company found a new way to conspiring with landlords to break the law.”
The attorneys general of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee and Washington state also joined the Justice Department’s lawsuit.
RealPage, whose owner is private equity firm Thoma Bravo did not immediately respond to CNBC’s request for comment.
Garland said the lawsuit follows a nearly two-year investigation and comes in the middle of a U.S. presidential election cycle when high housing prices and rents have become key issues.
Democratic candidate Kamala Harris announced last week economic plan The bill aims to lower rental costs by cracking down on the companies behind pricing tools that allow landlords to collude with each other.
— CNBC’s Ermon Javers contributed to this report.
