The US Department of Justice has filed an anti-trust lawsuit against property management software company RealPage Inc, accusing it of using its data to enable landlords to push up rents.

The US giant, with a growing UK subsidiary, has an 80% share of the American property management software market. It shares its huge cache of data with its client landlords, recommending how they can align prices and optimise rents.

Monopoly

According to The US Justice Department it is an: “Unlawful scheme to decrease competition among landlords in apartment pricing and to monopolize (sic) the market for commercial revenue management software that landlords use to price apartments.

“Landlords agree to share their competitively sensitive data with RealPage in return for pricing recommendations and decisions that are the result of combining and analysing competitors’ sensitive data.

Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law.”

“This creates a self-reinforcing feedback loop that strengthens RealPage’s grip on the market and makes it harder for honest businesses to compete on the merits.

“As a result, RealPage’s software tends to maximize price increases, minimize price decreases, and maximize landlords’ pricing power.

US Attorney General, Merrick Garland, said: “Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law.”

RealPage responded on its website by saying the accusations were false and misleading and that landlords were free to decide their own rental prices.