Richardson, Texas — Property management software firm RealPage has announced that the U.S. Department of Justice’s (DOJ) Antitrust Division dismissed its criminal investigation into pricing practices in the multifamily rental housing industry.
Earlier this fall, The Justice Department and eight states sued the Richardson, Texas-based firm under the accusation that the company’s rent-setting algorithm allowed landlords to coordinate price escalations illegally. The complaint was one of the most sweeping legal actions ever taken by the federal government against a private company in the rental housing industry, according to reports by the Wall Street Journal.
RealPage cooperated with the DOJ throughout its investigation, remaining steadfast in its belief that it did not violate antitrust laws. “RealPage filed a motion to dismiss the Justice Department’s lawsuit alleging antitrust violations because the DOJ’s baseless claims failed to meet governing legal standards,” a representative from the company explained.
“The allegations in the complaint do not demonstrate that RealPage has done anything but compete on the merits,” the source continued. “The facts refute the DOJ’s antitrust allegations that RealPage’s software covered by the complaint actually supports less than 7 percent of rentals nationwide, and our customers have always had complete discretion to set their own rents.”
“Furthermore, as the DOJ acknowledges in their complaint, the software’s recommendations are accepted by customers less than half the time,” they continued. “RealPage’s revenue management software does not violate antitrust laws or fix prices in any way — RealPage products are purposely built to be legally compliant. The DOJ has failed to allege an antitrust violation, and we believe the court should dismiss this suit.”
RealPage has announced plans to continue to defend itself in the remaining previously filed civil lawsuits and has created a dedicated website outlining the firm’s public policy.