The U.S. Justice Department announced it reached a settlement with RealPage Monday over claims the Richardson-based software company's algorithms helped landlords fix prices.
In a statement released after the settlement Dirk Wakeham, RealPage President and CEO, said the suit provided guidance on how RealPage can operate moving forward.
"This resolution marks an important milestone for RealPage, our customers, and the multifamily industry," Wakeham said. "We are convinced that RealPage is part of the solution to addressing the cost of housing, helping operators make informed, independent decisions in a complex housing market.”
The DOJ filed the case in a North Carolina federal court last year. The case was among the first to accuse companies of algorithmic collusion, and while RealPage wasn’t the only company using this service, they controlled about 80% of the market, according to court documents. Dallas-Fort Worth was the company's second-largest market.
In a video posted to X, Assistant Attorney General Gail Slater said the case will stop RealPage from coordinating pricing with its customers.
“RealPage was replacing competition with coordination and renters paid the price,” Slater said.
Under the settlement, RealPage will undergo a three-year monitorship by the DOJ that limits how the company can collect and use non-public data.
“Competing companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement,” Slater said.
Alexsis Jones is a reporter and producer for KERA News. Got a tip? Email Alexsis at ajones@kera.org.
KERA News is made possible through the generosity of our members. If you find this reporting valuable, consider making a tax-deductible gift today. Thank you.
