The Justice Department is suing the company behind widely used software that helps landlords set rent prices, claiming that RealPage’s rental recommendation algorithm drives up prices and “deprives tenants of the benefits of competition in rental terms.”

In the complaint, the Justice Department and eight states allege that RealPage obtains nonpublic rental price information from competing landlords who use the software. RealPage then allegedly feeds that information into its algorithmic pricing software, which landlords can use to get suggestions for their rental prices.

As the lawsuit alleges, “these are more than mere ‘recommendations,'” as RealPage also “reviews and evaluates other landlord policies” in which it seeks to end concessions and discounts for renters. Landlords can also “effectively agree to outsource their pricing function” to RealPage with an “Auto-Accept” option that automatically adjusts their rents based on its algorithm.

“In a competitive market, each landlord can independently decide to make concessions so that it can better compete for landlord favor,” the lawsuit states. “But RealPage is once again attempting to replace fully independent, competitive decisions with collective action by eliminating concessions.”

In addition, the Justice Department alleges that RealPage has a monopoly on commercial revenue management software for multifamily properties, holding about 80 percent of the market share. RealPage’s “unlawful agreements” with landlords and the sensitive data it receives from them give the company a competitive advantage, the lawsuit says. The edge reached out to RealPage for comment but did not immediately receive a response.