Algorithmic price-fixing of rents is here

The article discusses the potential antitrust implications of RealPage, a company that provides property management software to landlords, which may facilitate algorithmic price-fixing in the rental market. Lawsuits against RealPage allege that its software enables landlords to coordinate rent increases without direct collusion, effectively creating a price-fixing cartel. This situation raises concerns about the impact on housing affordability, as a significant percentage of multifamily units in the U.S. are reportedly priced using RealPage's recommendations. Critics argue that the company's practices, including pressuring landlords to follow its pricing suggestions, resemble cartel behavior. While RealPage disputes these claims, the legal landscape for addressing algorithmic collusion remains challenging. Existing antitrust laws require proof of explicit agreements between companies, which is difficult to establish without access to internal communications or algorithmic data. Some lawmakers are proposing updates to antitrust laws to address these issues, but progress is slow. The article warns that if algorithmic price-fixing goes unchecked, it could lead to a dystopian pricing environment where competition diminishes, resulting in higher costs for consumers and stunted economic growth.

- RealPage's software may facilitate algorithmic price-fixing among landlords.

- Lawsuits claim this practice exacerbates the housing affordability crisis.

- Existing antitrust laws struggle to address algorithmic collusion effectively.

- Legislative efforts to update antitrust laws are currently limited.

- Unchecked algorithmic pricing could harm competition and consumer costs.