WASHINGTON D.C. – The United States Department of Justice (DOJ) on Monday, November 24, 2025, announced a landmark settlement with real estate technology firm RealPage Inc., effectively banning its controversial rent-setting algorithm accused of illegally inflating rental prices for millions of tenants. The case marks one of the most significant government actions against “algorithmic collusion” and serves as a critical cautionary tale for global markets, including Kenya's rapidly digitising rental sector.

The settlement, filed in the U.S. District Court for the Middle District of North Carolina, resolves a lawsuit initiated in August 2024. The DOJ, alongside several state attorneys general, alleged that RealPage’s software, widely known as YieldStar, facilitated a price-fixing scheme among competing landlords. According to the complaint, landlords would feed sensitive, non-public data—such as current rental rates and occupancy levels—into the RealPage algorithm. The software then generated price recommendations that allegedly suppressed competition and maximized revenue, often by discouraging price reductions and coordinating increases across different property owners.

“Competing companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement,” Assistant Attorney General Abigail Slater of the DOJ's Antitrust Division stated on Monday. The department argued that using software as a medium for sharing competitively sensitive information does not shield companies from antitrust liability.

Terms of the Settlement

Under the proposed consent judgment, which awaits court approval, RealPage must cease using competitors' non-public data to determine rental prices. The company is also barred from using active lease data for training its software models and must remove features designed to limit price decreases. While the settlement includes no financial penalties or admission of wrongdoing by RealPage, it mandates the appointment of a compliance monitor for three years and requires the company to cooperate with the DOJ's ongoing lawsuits against property management firms that used the software.

In a statement, RealPage President and CEO Dirk Wakeham said the agreement “brings the clarity and stability we have long sought and allows us to move forward with a continued focus on innovation.”

Implications for Kenya's Rental Market

While there is no public evidence that RealPage's YieldStar software is widely used in Kenya, the principles of the case have direct relevance. Nairobi's rental market, which is home to a large tenant population, is increasingly influenced by property management software and online platforms. The RealPage settlement highlights a potential new frontier for anti-competitive practices that could disadvantage tenants in a market already facing affordability challenges.

The Competition Authority of Kenya (CAK) has already signalled its intent to increase oversight of digital markets. In early 2025, the CAK introduced the Competition (Amendment) Bill, aimed at regulating digital monopolies and granting the authority power over online platforms, including search engines and e-commerce sites. The bill proposes that market dominance can be established even for firms with less than 40% market share if they exhibit significant influence through network effects or access to data.

Speaking at a conference in September 2025, CAK Director-General David Kemei emphasized the need for new regulatory approaches for fast-evolving digital markets to ensure fair competition and consumer protection. The US case against RealPage provides a concrete example of the type of algorithmic-driven conduct that could fall under the CAK's expanded mandate, should the amendment pass.

A Global Precedent

The action against RealPage is a cornerstone of the DOJ's broader effort to apply traditional antitrust laws to modern technology. Legal experts note that so-called “hub-and-spoke” conspiracies, where a central entity (the hub, like RealPage) facilitates collusion among competitors (the spokes, like landlords), are a key area of focus for regulators worldwide. This settlement establishes a significant precedent that algorithms cannot be used as a smokescreen to engage in price-fixing. As Kenyan businesses and consumers rely more heavily on digital platforms for essential services, the regulatory frameworks governing them will become increasingly vital to ensuring a fair and competitive marketplace.