the company of violating antitrust laws by carrying out a price-fixing scheme that involved sharing private rent information among landlord competitors.industry, replaced “competition with coordination” in urban areas, leading to widespread artificial inflation of rent prices.
Attorney General Merrick Garland said in a press conference announcing the lawsuit that the lawsuit was the result of a two-year investigation. Eight states, including California, Colorado, Connecticut, North Carolina, Minnesota, Oregon, and Tennessee, joined the DOJ in the suit. “This software is developed, marketed, and sold to enable landlords to sidestep vigorous competition in the rental market,” Garland said, alleging that RealPage violated the Sherman Antitrust Act, legislation designed to combat business monopolies.
In practice, companies that manage large apartment buildings in urban areas will set their rent rates using a RealPage product like YieldStar by sending information to YieldStar, which in turn will generate an algorithm of pricing information for the apartment management companies. The companies, which operate as landlords, then use that information to give prospective renters their rent rates or give renewal rent rates to current renters who are considering renewing their leases.