RealPage, a software and property management company which uses algorithms and data sharing to recommend pricing to landlords, claimed that a Department of Justice (DOJ) antitrust inquiry that focused broadly on algorithmic pricing practices in real estate has been closed, though it was not immediately clear how this would affect separate civil lawsuits against RealPage or other investigations into those same practices.
According to a statement released by RealPage last Friday, the company “received notice that the…Antitrust Division has closed its criminal investigation into pricing practices in the multifamily rental housing industry.”
The short statement did not provide further details, and it remains unclear whether the DOJ will continue to pursue a separate civil lawsuit alleging RealPage engaged in an “unlawful scheme to decrease competition among landlords in apartment pricing and to monopolize the market for commercial revenue management software.”
Emailed inquiries to RealPage were not immediately returned. The DOJ did not immediately respond to a request for comment.
In its announcement, RealPage continued to defend its practices, which include widespread sharing of pricing data among competitors, which the DOJ previously argued drove prices up. RealPage claimed the company cooperated with the now-closed criminal inquiry, adding that it was never a target of that investigation, and promised to defend itself against other lawsuits.
“RealPage’s revenue management software is purposely built to be legally compliant, enhances competition throughout the rental housing ecosystem and is highly configurable by our customers. RealPage revenue management customers always have total discretion to accept or reject pricing recommendations,” the announcement read.
The news comes on the cusp of a new presidential administration taking over, which may (or may not) significantly alter how antitrust law enforcement prioritizes these types of investigations. While the RealPage inquiry was itself notable and had the potential to impact markets, real estate professionals are also carefully watching for signs of how the DOJ’s separate investigation into the National Association of REALTORS® (NAR) will proceed.
The specific language or commitments made by the DOJ when closing the investigation may also prove important. Back in 2020 (under former and now president-elect Donald Trump), the DOJ Antitrust Division promised to “close” the inquiry into NAR, before reopening it months later after President Joe Biden took office.
That set off a court battle that lasted over three years, with NAR arguing that allowing the DOJ to close and reopen investigations at will would erode trust and hamper future negotiations between law enforcement and private parties.
