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Competition Bureau says it's probing whether landlords are using AI to set rents

Feb 17, 2025 - financialpost.com
The Competition Bureau of Canada is investigating the use of AI-driven algorithmic pricing in the real estate rental market, following allegations that companies are using software to collude and inflate rents. This practice involves tracking competitors' rental rates and using the data to set prices, with a U.S. lawsuit claiming that companies used RealPage’s YieldStar platform for this purpose. The investigation was prompted by calls from the NDP and Innovation Minister Francois-Philippe Champagne, and it comes amid a Liberal leadership race where candidate Chrystia Freeland has pledged to ban such practices.

The U.S. Justice Department has expanded its lawsuit to include additional corporate landlords accused of using competitors' data to fix prices. The Competition Bureau, maintaining confidentiality, has stated it will take action if it finds evidence of illegal activities. The issue has become a point of contention in Canadian politics, with Freeland criticizing her rival Mark Carney, who was previously associated with Brookfield Asset Management, a company implicated in the U.S. lawsuit. Carney has since resigned from Brookfield to pursue the Liberal leadership.

Key takeaways:

  • The Competition Bureau is investigating the use of AI-driven algorithmic pricing in Canadian real estate rental markets.
  • An American antitrust lawsuit alleges companies used software to collude and inflate rents, involving RealPage’s YieldStar platform.
  • The U.S. Justice Department added six more corporate landlords to the lawsuit for allegedly using competitors' data to fix prices.
  • Liberal leadership candidate Chrystia Freeland proposes banning the use of AI to artificially raise rents, citing concerns over corporate landlords' practices.
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