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DOJ Sues RealPage Alleging Algorithmic Collusion in Rent Pricing
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The Department of Justice, along with eight states, has sued software firm RealPage. They claim RealPage's tools helped landlords collude, driving up rents. Attorney General Merrick Garland bluntly stated, "Everybody knows the rent is too damn high, and we allege this is one of the reasons why."
RealPage, owned by Thoma Bravo, denies the allegations. They call the lawsuit a "distraction" from broader economic issues. The company insists its software is legally compliant and has cooperated with the DOJ.
This lawsuit marks a first: the government accusing a company of using algorithms to subvert free-market competition. Antitrust laws, according to Garland, remain relevant despite new tactics.
The case comes amid a presidential election where high housing costs are a hot topic. Democratic nominee Kamala Harris has plans to tackle rental costs, including cracking down on collusion tools used by landlords.
The White House supports fair enforcement of antitrust laws to prevent illegal collusion. National economic advisor Lael Brainard emphasized the Biden-Harris administration's commitment to ensuring no one pays higher prices due to corporate lawbreaking.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 5 | Balanced reporting on allegations and RealPage's response. |
| Social Impact | 5 | Significant influence on public opinion regarding rent prices. |
| Credibility | 5 | Solid evidence from DOJ and RealPage's denial. |
| Potential | 6 | High potential to lead to significant changes in antitrust laws. |
| Practicality | 4 | Highly practical in addressing real-world rent pricing issues. |
| Entertainment Value | 3 | Some entertainment value in the controversy. |