The Justice Department’s Antitrust Division filed a proposed settlement to resolve claims against Charleston, South Carolina-based residential property manager Greystar Management Services LLC as part of its enforcement against algorithmic coordination and other anticompetitive practices in rental markets across the country.
Greystar manages nearly 950,000 rental units nationwide. Greystar was using rent-setting algorithms from RealPage, a Texas-based software-maker of property management software.
As alleged in Plaintiffs’ complaint, Greystar and other landlords, including five co-defendants, shared competitively sensitive data to generate pricing recommendations using RealPage’s algorithms, which also included anticompetitive rules that aligned competitors’ pricing. In addition, Greystar and other landlords discussed competitively sensitive topics—including pricing strategies, rents, and selected parameters for RealPage’s software—directly with each other.
“American greatness has always depended on free-market competition, and nowhere is competition more important than in making housing affordable again,” said Attorney General Pamela Bondi. “We will continue to vigorously pursue President Trump’s pro-consumer agenda.”
If approved by the court, the proposed consent decree would require Greystar to:
- Refrain from using any anticompetitive algorithm that generates pricing recommendations using its competitors’ competitively sensitive data or that incorporates certain anticompetitive features.
- Refrain from sharing competitively sensitive information with competitors.
- Accept a court-appointed monitor if it uses a third-party pricing algorithm that is not certified pursuant to the terms of the consent decree.
- Refrain from attending or participating in RealPage-hosted meetings of competing landlords.
- Cooperate with the United States’ monopolization claims against RealPage.
“Greystar firmly believes that its use of RealPage’s revenue management software complies with all applicable laws. That is why Greystar has vigorously defended itself in these matters and will continue to defend itself against any claims brought by regulators. Today’s settlements do not change that belief and the settlements contain no admission of wrongdoing,” said Greystar in a prepared statement. “Greystar remains committed to being at the forefront of innovation in service of its clients and residents, all within the bounds of the law. The industry continues to face litigation and unclear regulatory guidance around the use of revenue management tools. We entered into these settlements to make clear the government’s interpretation of the law and to ensure we continue to do things the right way. The settlements with the DOJ and the private plaintiffs also represent a significant step in putting these litigations behind us and moving the industry forward.”
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register.
“The Trump-Vance Administration is committed to promoting competition to help working class Americans pay for life’s necessities—including rent,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “Whether in a smoke-filled room or through an algorithm, competitors cannot share competitively sensitive information or align prices to the detriment of American consumers.”
