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Enforcement ActionLow RiskMultistate

DOJ and State AGs Sue RealPage for Antitrust Rental Pricing Scheme

RealPage Inc.August 23, 2024Connecticut Attorney General

Summary

Attorney General William Tong, along with the U.S. Department of Justice and eight other state attorneys general, filed a civil antitrust lawsuit against RealPage Inc. for allegedly using its algorithmic pricing software to facilitate price fixing among landlords and monopolize the market for revenue management software. The complaint alleges that RealPage collects competitively sensitive rental data from landlords to train its algorithm, which then recommends prices, harming renters by reducing competition. The lawsuit seeks an injunction to end these practices and restore competition.

Remedy

The complaint seeks an injunction to prohibit RealPage from continuing its alleged antitrust violations, including the use of its pricing algorithm to coordinate rents and maintain its monopoly in the commercial revenue management software market.

Injunction

Contract Impact

In-house legal teams should review all vendor and customer agreements with property management software providers like RealPage, focusing on clauses governing the sharing of competitively sensitive data (e.g., rental rates, lease terms) and the use of algorithmic pricing recommendations. Specific clauses to examine include data licensing terms, non-disclosure provisions, exclusivity requirements, and any language that could be interpreted as facilitating coordinated pricing among competitors. Agreements may need amendments to explicitly prohibit the use of shared data for price-fixing, ensure landlords retain full autonomy over final pricing decisions, and require transparency on how algorithms use competitor data. Additionally, review termination rights and audit provisions to monitor compliance with antitrust guidelines.

Contract Search Terms

algorithmic pricing softwarecompetitively sensitive informationrevenue management systemprice recommendation algorithmdata sharing agreementnon-disclosure clauseexclusive dealing provisionmarket allocationpricing autonomy clauseanti-competitive coordination

Laws Cited

Sherman Act
15 U.S.C. § 115 U.S.C. § 2

Violation Types

Entity Details

Entity

RealPage Inc.

Also known as: RealPage

Industry

Technology

Multistate Coalition

Official Sources

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