T
he U.S. Department of Justice has closed its investigation into RealPage's pricing practices in the multifamily rental housing industry, according to a statement from the company. RealPage plans to continue defending itself against civil lawsuits, which it believes are unfounded.

    This decision comes just three days after RealPage filed a motion to dismiss an antitrust case brought by the DOJ in federal court in North Carolina. The company argues that allegations of price-fixing conspiracy are baseless and that the DOJ has failed to demonstrate its monopoly power or dampen competition in the market.

    The controversy began when ProPublica reported in October 2022 that RealPage's proprietary software was driving up rents by suggesting prices based on data from other buildings. This led to class-action lawsuits and calls for legislation to address algorithm-driven rent pricing.

    Industry insiders have pushed back against what they see as an unfair characterization of revenue management software, a tool used for pricing since the 1980s. RealPage's outside counsel, Stephen Weissman, claims that the DOJ lacks evidence to support its claims.

    One issue in the case is how to measure RealPage's market share. The DOJ alleged that use of RealPage's software ranges from 29% to 60% in over 130 markets, but RealPage disputes this calculation and argues that a broader denominator would show a smaller impact on rental units.

    The outcome of the case was uncertain due to the transition from the Biden presidency to President-elect Trump's term. Experts predicted that a Trump DOJ would de-emphasize antitrust enforcement, and Trump has since tapped Gail Slater to head the Department's antitrust division, with a focus on reining in "Big Tech."