The U.S. Department of Justice (DOJ), joined by Minnesota Attorney General Keith Ellison and attorneys general from seven other states, has filed an antitrust lawsuit against RealPage, a Texas-based software company. The suit, filed in North Carolina, alleges RealPage’s pricing software allows landlords to set rents above market rates by sharing sensitive data like current rents and vacancy rates, leading to higher rental prices.
The DOJ claims this software, used by many landlords in Minnesota, violates the Sherman Antitrust Act by stifling competition and depriving renters of fair market pricing. RealPage denies the allegations, asserting their software can also lower rents when demand falls. However, the DOJ argues that landlords are pressured to accept the software’s pricing recommendations, reducing competitive pricing in the rental market.
This case could significantly impact Minnesota’s rental market, where rising rents are a concern. It also raises broader questions about the use of AI in setting prices and the need for regulatory oversight to ensure fair market practices.
As the lawsuit unfolds, its outcome may influence rental pricing strategies and regulatory policies nationwide, including in Minnesota.