Blackstone's LivCor Resolves DOJ Allegations of Rent Price Fixing

The U.S. Department of Justice (DOJ) announced on Tuesday that it has reached a settlement with LivCor, a property management subsidiary of Blackstone Inc., over allegations that competing landlords conspired to inflate rental prices by sharing sensitive pricing data via a software platform. In January, the DOJ initiated legal action against six major landlords, including LivCor, claiming they utilized RealPage's software to illegally exchange confidential rental pricing information. As part of the settlement, LivCor has agreed to refrain from establishing rents based on other landlords' confidential data or utilizing third-party software for such purposes. This settlement is positioned within President Trump's efforts to reduce living costs for Americans, as the Republican leader grapples with low approval ratings regarding his economic management and attributes high living expenses to his predecessor, Joe Biden. DOJ Assistant Attorney General Abigail Slater emphasized that this agreement serves as a warning to landlords nationwide, ensuring that competition laws protect renters from the negative impact of excessive information sharing or price alignment, whether facilitated by algorithms or other means. LivCor has settled the case without admitting guilt to the allegations. A LivCor representative stated, "We remain committed to serving our residents." The DOJ also filed suit against RealPage last year in its inaugural case addressing alleged algorithmic collusion, where competitors input confidential pricing data into software to generate pricing suggestions. Last month, the DOJ settled with RealPage, requiring the company to implement a three-year monitoring period and impose restrictions on its data usage. Other companies, including Cortland Management and Greystar Management Services, have reached similar settlements with the DOJ.