T
he Canadian Competition Bureau is investigating the use of algorithmic pricing in the country's rental market, a practice that some politicians and renter advocates claim inflates monthly rents. The probe targets landlords who allegedly use software to track competitors' prices and set their own accordingly, rather than competing with lower rates.

    According to the Bureau, if evidence of anti-competitive activities is found, action will be taken. This investigation follows a US Department of Justice lawsuit against Texas-based RealPage Inc., which accused the company of helping landlords collude to raise rental prices using algorithmic data.

    RealPage allegedly allows landlords to submit sensitive information, including lease terms and rental rates, to its platform. The software then provides pricing recommendations based on competitors' data, enabling landlords to "sidestep vigorous competition" and set higher rents. The lawsuit alleges that RealPage's software subverts the competitive process, leaving renters to pay the price.

    The Competition Bureau is aware of similar probes outside Canada but cannot comment due to confidentiality requirements. Meanwhile, rental rates remain high across the country, with an average monthly rent of $1,876 for a one-bedroom apartment in February, according to Rentals.ca. In some cities, rents exceed $2,000 per month.

    Liberal Party leadership contender Chrystia Freeland has proposed banning the practice, accusing corporate landlords of using artificial intelligence to collude and set rates that squeeze renters. Federal Industry Minister François-Philippe Champagne previously called for an investigation into the price-setting algorithm practice.