Deputy Attorney General Lisa Monaco Delivers Remarks on the Justice Department’s Lawsuit Against RealPage for Algorithmic Pricing Scheme that Harms Millions of Americans

Remarks as Prepared for Delivered

Thank you, Mr. Attorney General.

Since the beginning of this administration, our approach to corporate misconduct across the Justice Department has been simple, straightforward, and relentless.

We identify the most serious wrongdoers, whether individuals or companies, and we focus our full energy on holding them accountable.

Today’s complaint against RealPage illustrates this strategy in action.

In this country, we’ve had laws for over a century that promote healthy competition.

Competition is the bedrock of our market economy — like how a strong foundation supports a house.

When that competition — that foundation — is undermined, the house stands on shaky ground, compromising its stability and the security of those who live there.

Today, we’re seeing this phenomenon play out in our nation’s rental housing market.

As alleged in our complaint, RealPage is using technology to undermine competition in the rental market and to harm consumers in the process.

By feeding sensitive data into a sophisticated algorithm, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices.

Healthy competition in the rental housing market requires two key ingredients.

The market must be dictated by open and honest competition among landlords.

And, renters must be able to negotiate prices with landlords — without the specter of collusion — to arrive at a fair deal for all involved.

But RealPage has shut away those ingredients, changed the locks, and thrown away the keys

And they’ve done that by selling software to landlords – software that operates off an algorithm to drive pricing – among other things.  

As alleged:

• RealPage’s systems rely on confidential and sensitive pricing data from landlords.
• They run this data through a machine learning model to set prices, then recommend them to landlords.
• And through this process, they enable landlords to avoid negotiating with tenants, without concern they’ll be undercut by competitors.

That’s collusion — and that’s against the law.

Let’s be clear, algorithms don’t operate in a law-free zone. 

After all, humans create them.

Our laws will always apply to the people behind the machines and the companies behind the algorithms.

This idea is core to how the Department is addressing technology-enabled crimes — particularly those that employ artificial intelligence and machine learning.

Because while the law governing AI is sure to develop over time, our existing laws and enduring legal tools — including the antitrust laws — already offer a firm foundation.

Make no mistake:

• Training a machine to break the law is still breaking the law.
• Price coordination using AI is still price coordination.
• And monopolization advanced by an algorithm is still monopolization.

I want to thank the women and men of the Antitrust Division — and Assistant Attorney General Jonathan Kanter for his leadership and their hard work on this matter; I want to thank them for promoting healthy competition and fairness across this critical market; and for protecting consumers, renters, and landlords alike.

No company or individual is above the law — and today’s action, once again, makes that crystal clear.

With that, I’d like to invite up Acting Associate Attorney General Mizer.