New limits for a rent algorithm that prosecutors say let landlords drive up prices

Core Viewpoint - RealPage has reached a settlement with the Department of Justice to cease sharing nonpublic information among landlords, addressing concerns of illegal "algorithmic collusion" that could inflate rental prices [1][3]. Group 1: Settlement Details - The settlement prohibits RealPage from using real-time data for price recommendations, allowing only nonpublic data that is at least one year old for algorithm training [3]. - RealPage will not pay damages or admit wrongdoing as part of the settlement, which still requires judicial approval [1][3]. Group 2: Impact on the Market - The settlement is expected to enhance competition in local housing markets, leading to rents being determined by market forces rather than algorithms [4]. - Critics argue that RealPage's software has enabled landlords to charge higher rents by leveraging confidential data [2]. Group 3: Legal Context and Reactions - The DOJ's antitrust lawsuit against RealPage was initiated during the Biden administration and involved multiple states, including California and New York, which have enacted laws to regulate rent-setting software [6]. - RealPage's attorney stated that the software's historical use of aggregated and anonymized data has contributed to lower rents and increased competition [5].