Connected media – Associated media
On Friday, the U.S. Justice Department, alongside attorneys general from eight states, filed a lawsuit against RealPage, a software company, accusing it of collaborating illegally with landlords to reduce competition and maintain high rental prices, affecting millions of tenants.
The civil lawsuit, filed in the U.S. District Court in North Carolina, claims that RealPage utilizes its technology to manipulate and distort market dynamics. “RealPage operates as a digital intermediary that aggregates and misuses critical data about rental properties,” according to the legal documents.
The lawsuit alleges that the company profits at the cost of renters, who face inflated prices, and honest businesses that are deprived of fair competition. Attorney General Merrick Garland emphasized the severity of the issue in a press briefing, stating, “High rents are a significant concern, and this case highlights a contributing factor.”
This marks the inaugural legal challenge where the government has accused a firm of exploiting algorithms to circumvent free market principles.
Garland further remarked, “The principles of antitrust law remain relevant, regardless of how sophisticated the methods of collusion might become.”
He added, “It’s unjust for Americans to endure higher rents because a corporation conspires with landlords in illegal activities.”
The states joining the lawsuit include North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington. RealPage, which is under the ownership of Thoma Bravo, a private equity company, has yet to comment on the allegations.
This legal action is part of a broader narrative of rising housing costs becoming a focal issue in the current U.S. presidential race. Just last week, Democratic frontrunner Kamala Harris proposed an economic strategy aimed at reducing rental expenses by targeting unethical pricing practices among landlords.
While the White House has not officially commented on the lawsuit, Lael Brainard, a national economic advisor, issued a statement underscoring the Biden-Harris administration’s dedication to tackling the burden of high rents. “The administration is committed to vigorous enforcement of antitrust laws to prevent illegal corporate practices that lead to excessive costs for Americans,” Brainard stated.
This development is part of ongoing coverage by CNBC, which continues to provide in-depth analysis and updates on this significant legal and economic story.
Linked media – Connected media
