A Settlement That Raises Questions

Senator Elizabeth Warren isn't holding back in her criticism of how the Trump Justice Department handled its antitrust case against RealPage, a property-management software company accused of helping landlords coordinate rent increases. In a Tuesday post on X, the Massachusetts Democrat accused the administration of siding with landlords over renters, suggesting the settlement lets RealPage continue to "rip off renters."

At the heart of the controversy are RealPage's algorithmic pricing tools, which large property managers use to set rents. Warren argues that instead of cracking down on what she describes as price-fixing, Trump's DOJ cut a deal that essentially gives the company a green light. She even questioned whether RealPage views the settlement as "an endorsement" of its business practices, asking if this represents Trump's "Art of The Deal or a sham."

The Original Lawsuit and Accusations

The case against RealPage started in August under President Joe Biden's administration, when the Justice Department and eight state attorneys general accused the company of running "an unlawful scheme to decrease competition among landlords" by leveraging nonpublic rental data. Internal communications cited in court filings painted a damning picture, describing the company's strategy as "driving every possible opportunity to increase prices." One landlord allegedly called the platform "classic price fixing."

The numbers tell a striking story. White House estimates calculated that RealPage's platform cost tenants an additional $3.7 billion in rent during 2023 alone, exacerbating an already severe housing affordability crisis. The DOJ also went after six of the nation's largest landlords last year, including BlackRock Inc.'s (BLK) LivCor LLC and Cushman & Wakefield PLC (CWK), accusing them of sharing data on rents and occupancies to coordinate pricing and avoid competitive rent reductions.

Warren had previously argued that a provision in Trump's "One Big, Beautiful Bill" prohibiting states from regulating AI for ten years was designed specifically to protect companies like RealPage from state-level scrutiny.

What the Settlement Actually Does

The DOJ announced its settlement with RealPage on Monday, and the terms are revealing in what they require and what they don't. The agreement includes no fines and no admission of wrongdoing from the company. RealPage must stop using competitors' nonpublic lease data in its pricing software and limit its model training to older historical data. The settlement also prohibits certain features that actively promoted rent increases and requires a court-appointed monitor to ensure compliance.

For its part, RealPage is framing the settlement as providing "resolution and certainty," stating that the company "has worked collaboratively with the DOJ" and that its products "remain fully available, legally compliant, and aligned with evolving laws and policies." That's corporate-speak for claiming victory, which is precisely what seems to have Warren fired up.

Neither the DOJ nor RealPage immediately responded to requests for comment on Warren's criticisms.