RealPage suits Berkeley for the ban on the pricing of the algorithm rental

Berkeley, California runs prosecution By RealPage on its ban on the algorithms used to determine the prices of rental apartments. The lawsuit states that Berkeley Decree He passed in March It represents a “comprehensive and unconstitutional ban on legal speech”, and a violation of the prohibition of the first amendment to the content based on content.

RealPage is a controversial company Cartel is similar By some legislators throughout the United States. It is not difficult to know the reason: Realpage mainly provides an angel The algorithm that can increase its revenues to the maximum By evaluating customer real estate in addition to renting data from nearby real estate to provide proposed rental prices. Many people actually hate an angel when they think it is a main immoral business model – as it makes a profit for individuals who need a roof over their heads. It serves RealPage as something from an outlet to express this frustration.

Critics claim that the practice of RealPage is to compare rental prices to submit a proposal that amounts to illegal prices. Last year, the Ministry of Justice, during the era of former President Joe Biden, filed a civil lawsuit to combat monopoly against RealPage, accusing of reducing competition between owners by generating price recommendations based on competitors’ pricing information, while in the “free” market, its owners will have to compete independently on the basis of prices, rental conditions and other factors. Prosecutors say RealPage controls 80 % of the market for commercial revenue management programs.

The data gathered by the Ministry of Justice showed how in some areas where the RealPage program was dominant, the rents increased at a higher rate than the national average – although it is difficult to determine the amount of these increases that could be attributed to the RealPage program. However, the Ministry of Justice at the Ministry of Justice cited the words of real executives on how to increase the product revenues to the maximum: “There is a greater commodity in everyone’s success in exchange for competition against each other in a way that makes the entire industry in reality low.”

There is a common abstinence in the MBA programs that companies must not participate in price wars. RealPage comments indicate that it follows this logic, although the company is designed that it does not participate in illegal collusion. She says that owners accept their suggestions less than 50 % of time, and the company believes that Berkeley’s ban is up to a scapegoat. The real issue, says RealPage, is a severe lack of housing supply.

In one case mentioned by the Ministry of Justice, RealPage Proposal The owner can increase the rent by 7 % by reducing the occupancy rate from 97 % to 95 %. But in the market with a high vacant, RealPage may argue, the owners will remain binding on the market forces to reduce the rent in order to reach the goal of the occupancy.

Supporters argued “abundance” or Yimby movements that canceling the organization of the housing market would lead to low rental prices. The development of new real estate in states such as California is a slow and arduous process, and new residential buildings are often targeting NIMBY species that use environmental laws to try to thwart any new development. However, regulatory restrictions can also allow plans such as RealPage for prosperity.

In Berkeley specifically, a report issued by the Housing Consultative Committee found that six major real estate companies were named in lawsuits on the RealPage program that own more than 1,300 apartments in the city. The RealPage program has been appointed to enter into force on April 24, but the company is seeking a temporary restriction to prevent it.

While RealPage has heavily bent over the arguments of the first amendment, many activities that involve freedom of expression are still illegal. Conspiracy may include prices for freedom of expression, but this does not make its organization illegal. It is not clear where the courts will fall into this case, or whether the Trump administration will continue to litigate.

Regardless of how this issue is shaken, the angel must be aware that they are not considered with great respect in the United States, and this program does not do any preferences.