DOJ seeks court approval of Willow Bridge consent decree on algorithmic rent coordination
DOJ proposed a Tunney Act settlement with Willow Bridge that would bar certain algorithm coordination and competitor data sharing while court approval is pending.
The Justice Department’s Antitrust Division has filed a proposed consent decree that, if approved, would restrict Willow Bridge Property Company LLC’s rental pricing practices tied to “algorithmic coordination” and sharing of competitors’ competitively sensitive information. The agreement is still subject to the court approval process under the Tunney Act.
DOJ says the case is pending in the U.S. District Court for the Middle District of North Carolina and is part of a broader enforcement effort that has also produced proposed settlements involving RealPage and other large landlords.
What DOJ says Willow Bridge allegedly did
As alleged in DOJ’s referenced complaint, Willow Bridge—along with other landlord co-defendants—engaged in a scheme to set rents using each other’s competitively sensitive information through pricing algorithms. DOJ also alleges the shared data was used to generate pricing recommendations using RealPage’s algorithms and included anticompetitive rules that aligned pricing, and that the landlords discussed pricing strategies, rents, and RealPage software parameters with one another.
What would change if the court approves
If the court approves the proposed consent decree, Willow Bridge would be required to:
- Limit certain algorithm use: refrain from using anticompetitive algorithms that generate pricing recommendations using competitors’ competitively sensitive data or that incorporate certain challenged anticompetitive features.
- Stop sensitive info sharing: refrain from sharing competitively sensitive information with competitors.
- Add a monitor in specific cases: accept a court-appointed monitor if it uses a third-party pricing algorithm product that is not certified under the decree’s terms.
- Stay out of RealPage competitor meetings: refrain from attending or participating in RealPage-hosted meetings of competing landlords.
How the monitor requirement is triggered
The proposed Final Judgment says Willow Bridge would not be subject to a monitor if all third-party revenue management products it licenses or uses at its properties are certified (or otherwise compliant) under the decree. But if Willow Bridge elects to use a third-party revenue management product that is not certified (or if a court finds it violated another term), then—upon application of the United States—the court would appoint an independent third-party antitrust monitor selected by the U.S. and approved by the court.
What happens next under the Tunney Act / APPA
DOJ says the proposed settlement and a competitive impact statement will be published in the Federal Register. The Stipulation and Order describes a 60-calendar-day written comment window tied to the later of (1) the first day of the required APPA newspaper notice and (2) Federal Register publication. After that public-comment period, the court may enter the final judgment if it finds the settlement is in the public interest.
Who should pay attention
Tenants and renters should watch how the court and the public-comment process address restrictions aimed at reducing competitor-to-competitor information exchange and limiting algorithmic coordination in rent-setting. For property owners and management firms, the most practical watch-items are the decree’s guardrails on certified versus non-certified third-party tools and the added compliance oversight the monitor is designed to provide if certification isn’t met.
Sources
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