The Price of 'Peer-to-Peer': Texas v. RealPage
The State of Texas is leading the charge against what it calls a 'High-Tech Price-Fixing Cartel.' Can an algorithm be a 'co-conspirator' under the Sherman Act?
While the DOJ has reached a partial settlement with some landlords, the core litigation against RealPage (Case No. 1:24-cv-00710) remains a live, aggressive docket in 2026. The State of Texas is leading the charge against what it calls a "High-Tech Price-Fixing Cartel."
The "Horizontal" Collusion Theory
Usually, price-fixing involves CEOs meeting in a smoky room. Here, the "room" is a software algorithm.
The Prosecution's Case
The State alleges that by using RealPage's software, competing landlords shared non-public, competitively sensitive data (like real-time occupancy and actual lease prices). The algorithm then told every landlord to raise rents simultaneously.
The "Efficiency" Defense
RealPage argues that their software is merely a tool for "market transparency." They contend that landlords are free to reject the algorithm's suggestions and that using data to set prices is a standard, pro-competitive business practice.
Why This Matters
This case tests the limits of the Sherman Act. It asks: Can an algorithm be a "co-conspirator"? If the court finds RealPage liable, it will effectively ban the use of third-party "pricing engines" in industries ranging from airlines to hotels.
Explore This Case
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