Attorney General William Tong, along with the U.S. Department of Justice and a coalition of nine other states, are asking for a jury trial in an antitrust lawsuit against RealPage. A recently filed amended complaint alleges that “six of the nation’s largest landlords” participated in “algorithmic pricing schemes that harmed renters.”
Three of the real estate companies named in the complaint–Greystar Real Estate Partners LLC, Pinnacle Property Management Services LLC, and Willow Bridge Property Company LLC rent properties in Connecticut. In total, the six companies named in the complaint operate “more than 1.3 million units in 43 states and the District of Columbia.”
“I don’t have to tell anyone–rent is completely unaffordable and out of control right now. We are alleging today that some of the nation’s largest landlords–including three operating in Connecticut–rigged the market using unfair algorithmic pricing to suppress competition and jack up costs for millions of renters.” Tong said in a press release announcing an amended complaint in the suit had been filed.
The complaint alleges that the companies “actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms.” In addition to using RealPage’s pricing algorithm, which the suit argues is anti-competitive, it alleges high-level members of the competing companies communicated directly about rents, occupancy, and “other competitively sensitive topics.” It also alleges the companies conducted “call around” discussions and discussed “competitively sensitive information about rents, occupancy, pricing strategies and discounts;” participated in RealPage user groups and discussed modifying the software’s pricing methodology; and shared information about RealPage software parameters.
The lawsuit was originally filed in June 2024. While the original complaint sought relief in a variety of forms, including seeking to have RealPage’s alleged anticompetitive practices enjoined, it did not request a jury trial. The amended complaint is requesting the case be brought to a jury trial.
At the time it was filed, RealPage released a statement disputing the allegations and noting claiming the lack of affordable rental housing, driven by increasing supply and a lack of supply, was the real culprit.
The libertarian R Street Institute has released a series disputing the allegations against the lawsuit and arguing the lawsuit does not meet the traditional elements of an antitrust suit, which usually require a plaintiff to show defendants communicated with anticompetitive intent, resulting in anticompetitive outcomes.
It notes that legal analysis of the suit shows that RealPage customers don’t have any real contact with another. The DOJ has argued whether the “anticompetitive scheme” was automated or the result of direct communication is irrelevant.
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