The property management software company RealPage Inc. has pushed back at the antitrust lawsuit filed by the U.S. Department of Justice (DOJ) that claimed its products were used to coordinate rent hikes by landlords, claiming the lawsuit “cherry picks” aspects of its technology while being rushed to court without any attempt to seek a solution without the need for litigation.
According to combined media reports, RealPage’s outside counsel Stephen Weissman told a news conference that the company is willing to reach a solution that would satisfy the DOJ’s concerns.
“We made it clear to the DOJ that we believe strongly in the legality of our products, but if there are solutions here that allow us to continue innovating and competing in the market, we’re open to those solutions,” said Weissman, a former deputy director of the Federal Trade Commission’s bureau of competition. But Weissman added the DOJ never sought a non-litigation solution, adding, “They didn’t ask for changes. They just fired off a lawsuit.”
Weissman also pointed out that the rental data compiled by RealPage and shared with its landlord users was legal because it was culled from multiple sources and did not concentrate on rates between rival properties.
“The software is not driving higher rates than what would happen in a competitive market,” said Weissman, noting that it has a lower share of users in some of the nation’s most expensive housing markets.
In announcing its lawsuit, the DOJ claimed RealPage masterminded an “unlawful scheme to decrease competition among landlords in apartment pricing and to monopolize the market for commercial revenue management software that landlords use to price apartments.” The DOJ alleged that RealPage encouraged loyalty to its algorithm’s recommendations that allegedly maximized price increases and minimized price decreases. RealPage was also accused of training landlords to limit concessions and other discounts to renters. However, the lawsuit did not include any of the landlords that are using the product as co-defendants.
“It misstates a lot of the facts,” Weissman said about the lawsuit. “It cherry picks statements and documents without context. I think most importantly it omits major features of the software that make it legally compliant.”
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The DOJ is out of control, trying to regulate businesses they know nothing about and without the proper research or in depth investigation!
Same DOJ giving NAR a hard time & said realtor commissions is why home prices are so high. Same DOJ working hand in glove with DHS allowing open borders, free housing to illegals while kicking vets/American tax payers to the curb. This administration is doing all they can to continue the destruction of America; particularly the middle class. Notice how many headlines today are real estate related, specifically about housing? The push to no ownership of personal property- you’ll own nothing and will be happy is underway.