Debate Heats Up Over DOJ’s Antitrust Lawsuit Against AI Pricing Firm RealPage

The U.S. Department of Justice (DOJ)’s antitrust lawsuit against RealPage, a company specializing in AI-powered rental pricing software, is drawing sharp criticism from legal experts and state officials who argue the case misapplies core principles of antitrust law and threatens to derail technological innovation.

According to Bloomberg, the DOJ contends that RealPage’s software, which offers rent recommendations based on supply, demand, and other market data, has facilitated tacit collusion among landlords, thereby artificially inflating apartment rents. The agency argues that this violates Section 1 of the Sherman Act—even though landlords do not directly communicate with each other and independently choose whether to follow the software’s pricing suggestions.

Critics argue that the lawsuit mischaracterizes the nature of algorithmic tools and sets a dangerous precedent. Former Missouri Assistant Attorney General John Reeves has warned that the case “undermines the future of artificial intelligence and erodes antitrust law by misidentifying what counts as collusion,” per Bloomberg. Reeves and others caution that equating the use of shared AI tools with conspiracy risks stifling technological advancement across sectors far beyond real estate.

The RealPage litigation is not an isolated enforcement action. In recent months, the DOJ has increased scrutiny of algorithmic pricing systems. In October 2024, the department filed an amicus brief in a lawsuit alleging major Las Vegas hotels used shared algorithms to coordinate room rates. And in March 2024, the DOJ teamed up with the Federal Trade Commission to submit a statement of interest in a case against Atlantic City casino-hotels, challenging the legality of competitors relying on similar algorithmic tools to make pricing decisions.

Read more: RealPage Sues Berkeley Over Ban on Rental Pricing Software

The escalation of these cases signals a broader regulatory trend that many believe conflates modern pricing software with illegal collusion. Arizona Attorney General Kris Mayes, in a letter urging Attorney General Pam Bondi to support the RealPage lawsuit, argued that federal intervention in the pricing software market is necessary to protect renters. However, opponents believe this position represents a fundamental misunderstanding of both market dynamics and the proper role of antitrust enforcement.

Legal analysts say the lawsuit risks criminalizing standard industry practices. Critics fear it could have a chilling effect on the adoption of artificial intelligence tools across multiple sectors, ranging from travel and hospitality to logistics and consumer goods. “Pursuing the RealPage case would risk making a historic misstep that transcends the particular facts,” Reeves cautioned, emphasizing the need for a fact-based, legally grounded approach to enforcement, according to Bloomberg.

Some commentators suggest that a reversal under a future Trump administration—should it return to power—would be a welcome move. They argue that walking back the DOJ’s aggressive posture toward AI-enabled pricing could reaffirm a commitment to innovation while still preserving antitrust principles.

Source: Bloomberg