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DOJ charges RealPage program helps raise rents in antitrust suit
DOJ filed an antitrust lawsuit against RealPage, alleging an illegal scheme that allows landlords to raise rents.
Headline
DOJ filed an antitrust lawsuit against RealPage, alleging an illegal scheme that allows landlords to raise rents.
Context
OUR TAKE Ministry of Justice officials claim that RealPage is another reason for high rents, in addition to a severe shortage of housing supply, because the algorithm allows landlords to adjust prices and avoid competition that would otherwise depress rents. The control of prices should not rely solely on the formula, but should also be controlled manually to prevent monopolistic behaviour. — Iydia Ding, BTW reporter The U.S. Department of Justice on Friday filed an antitrust lawsuit against real estate software company RealPage , alleging an illegal scheme that allows landlords to coordinate higher rent prices. The lawsuit, filed with the attorneys general of states including North Carolina and California, alleges that the company violated antitrust laws through its algorithm, which is used by landlords to obtain recommended rent prices for millions of flats across the country.
Evidence
Pending intelligence enrichment.
Analysis
“We are disappointed that after years of education and cooperation on RealPage’s antitrust matters, the U.S. Department of Justice chose this moment to file a lawsuit in an attempt to scapegoat pro-competitive technology that has been used responsibly for years.” the company said. In an interview, Dom Beveridge, a veteran expert in the field of income management unrelated to the lawsuit, mounted a detailed, spirited defence of the income management software and said prosecutors fundamentally misunderstand how such products work. Also rea d: DOJ initiates probe into Nvidia’s market practices in AI chip sector Also read: US DOJ says TikTok collected US users’ views on sensitive issues
Key Points
- The U.S. Department of Justice on Friday filed an antitrust lawsuit against real estate software company RealPage, alleging an illegal scheme that allows landlords to coordinate higher rent prices.
- The lawsuit, filed with the attorneys general of North Carolina and California, among other states, alleges that the company violated antitrust laws through its algorithm, which landlords use to get recommended rent prices for millions of flats across the country.
Actions
Pending intelligence enrichment.
