Jerrold Bregman Speaks to The Business Journals About DOJ Lawsuit Against RealPage

The Business Journals recently asked Jerrold Bregman to weigh in on a new lawsuit filed by the U.S. Department of Justice against real estate software company RealPage over its pricing algorithm. The lawsuit claims the algorithm violates the Sherman Antitrust Act, and, per Attorney General Merrick Garland, “enables landlords to share confidential, competitively sensitive information and align their rents.” 

Jerry tells The Business Journals, “Artificial intelligence is powering these algorithms and enabling this process, which separate individuals from the actions. It’s machine learning and dictation, and [according to the lawuit] allows collusive practices without the discussion. It hasn’t been seen in commercial real estate, but I think this is indicative of the times that we’re in.” 

He goes on to discuss the novelty of this algorithm, “There’s a lot of publicly available information they can attain … but this next level, of taking highly sensitive information, including rent concessions and vacancy rates, and putting all of that together to determine what the recommended rate should be: That’s entirely new, and that’s the business model.”

“I don’t know if it will happen in the near or long term, but I think the fact this [RealPage] lawsuit is pending, and the kinds of claims they’re bringing, is a shot across the bow, a bellwether action by the DOJ to express it’s going to be taking seriously this machine learning and what it views as anticompetitive information sharing. The consequences could be very far-reaching, including in real estate and beyond.”

To read the full article in The Business Journals, click here (subscription may be required).