Rep. Gallego Calls for FTC Probe into RealPage’s Anticompetitive Practices

Representative Ruben Gallego (AZ-03) has directed a missive to Federal Trade Commission (FTC) Chair Lina Khan, urging an investigation into the purported anticompetitive maneuvers by RealPage, a rent-pricing company dominating the multifamily housing market in the United States.

Highlighting concerns over potential price-fixing practices, Rep. Gallego underscores the significant adoption rate of RealPage’s pricing recommendations, with nearly 90% of such suggestions being implemented by apartment managers.

Furthermore, he points out the collaboration facilitated by RealPage among landlords, who would otherwise be competitors, through hosted working groups. This collaborative atmosphere, Gallego argues, may lead to coordinated rent increases across a vast majority of rental properties, detrimentally impacting Arizona’s working individuals and families.

RealPage, boasting a clientele encompassing 90% of the multifamily housing market in the U.S., offers pricing software tailored for property managers and landlords. Utilizing proprietary data, the software generates rental unit prices aimed at maximizing landlords’ revenue. However, according to Gallego’s assertions, Phoenix residents residing in units priced through RealPage reportedly face an overcharge averaging at 12% compared to units priced independently.

Read more: DOJ Backs Lawsuits Against RealPage Over Rent Overcharging Allegations

Gallego’s letter to the FTC draws attention to the Commission’s authority under federal antitrust laws to address and penalize companies found engaging in anticompetitive behaviors detrimental to consumers.

This call for investigation comes on the heels of a lawsuit filed by Arizona Attorney General Kris Mayes in Maricopa County Superior Court, alleging violations of Arizona’s antitrust laws by RealPage.

It is noteworthy that Congressman Gallego has been actively pursuing initiatives to alleviate housing costs and safeguard consumers in Arizona. Last month, he convened two roundtable discussions focused on enhancing affordable housing and addressing homelessness in the state. Additionally, he lauded the FTC’s legal action to impede the merger of Kroger and Albertsons, a move he vocally opposed.

As this saga unfolds, stakeholders await the FTC’s response and potential actions regarding the allegations against RealPage, with implications spanning the multifamily housing landscape and consumer welfare in Arizona and beyond.

Source: Ruben Gallego House