On The Merits
How Antitrust Law Is Confronting the Housing Crisis
Nov 5, 2024
Katie Arcieri, a Senior reporter at Bloomberg Law specializing in antitrust litigation, joins Justin Wise, a reporter focused on antitrust agencies. They explore how major landlords allegedly colluded to raise rents using AI-driven software, drawing parallels to similar cases in the hotel-casino industry. The discussion delves into the legal challenges of proving tech-enabled price-fixing and the implications of recent federal rulings. With the housing crisis at the forefront, they unpack the intersection of AI, antitrust law, and government action.
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Quick takeaways
- The use of AI-driven property management software by landlords is raising antitrust concerns due to potential collusion in rent pricing.
- Recent federal court decisions indicate challenges in proving antitrust violations related to AI algorithms, complicating legal efforts against price manipulation.
Deep dives
The Role of AI in Rent Setting
Artificial intelligence tools are allegedly being used by large apartment landlords to manipulate rent prices through a shared property management software called RealPage. This software allows landlords to exchange data on pricing and occupancy, which feeds into an algorithm that provides optimized rental rates. According to lawsuits, this system creates a network of collusion, as landlords base their pricing decisions on these algorithmic recommendations rather than competing independently. This raises antitrust concerns, as it blurs the lines between competition and collusion, suggesting that such practices may circumvent traditional price-fixing agreements that are illegal under antitrust laws.
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