The U.S. Department of Justice has filed suit against Texas company RealPage, alleging that the company violated the Sherman Antitrust Act by enabling property owners to illegally collude, preventing competition in the rental market to artificially inflate their profits. According to reporting from the nonprofit ProPublica, RealPage’s software enables landlords to share confidential data so they can charge similar rates on rental properties.

Assistant Attorney General Jonathan Kanter said, “RealPage has built a business out of frustrating the natural forces of vigorous competition. The time has come to stop this illegal conduct.”

Kanter compared the system to drug cartels and went on to say, “We learned that the modern machinery of algorithms and AI can be even more effective than the smoke-filled rooms of the past. You don't need a Ph.D. to know that algorithms can make coordination among competitors easier.”

Officials at the DOJ say the lawsuit is the culmination of over two years of investigation into RealPage. This included analysis of internet documents and communications and also consultation with programmers who could break down how the computer code interacts with the proprietary data.

The lawsuit is part of an ongoing effort from federal, state, and local officials to mitigate the lack of affordable housing in American cities. It’s also part of a broader push to scrutinize similar information-sharing systems that might enable antitrust violations in other industries.

“Training a machine to break the law is still breaking the law,” said Deputy Attorney General Lisa Monaco.

Possible Preaching Angle:

When people use dishonest means to boost profits, it is not just illegal, it dishonors the Lord, who cares for the poor.