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RealPage makes property management software. The U.S. Justice Department, along with eight attorneys general, filed a lawsuit against the company on Friday for allegedly helping apartment managers and building managers in the United States collude to increase unit prices.
The Richardson, Texas based outfit is accused by critics of contracting with rivals to absorb information about their rates and terms in order to train RealPage’s recommendation algorithms. This, in turn, discourages competition among property owners, who rely on the company’s recommendations for pricing and other terms.
Zillow reports that rents in the U.S. have risen 33% since March 2020.
According to the lawsuit, RealPage, acquired in 2021 by Thoma Bravo for $10.2 billion, controls 80% of the U.S. market for commercial revenue-management software for multifamily housing rentals. The company has denied any wrongdoing.