The U.S. Department of Justice (DOJ) is intensifying its crackdown on anticompetitive practices driven by artificial intelligence (AI), focusing on cases like RealPage’s alleged use of AI algorithms to set rental prices above market levels. With a warning that AI-driven price fixing will face regulatory scrutiny, the DOJ’s actions signal stricter oversight and penalties for businesses engaging in unlawful activities.
DOJ Targets Anticompetitive Uses of AI in Business Practices
The U.S. Department of Justice (DOJ) is intensifying its scrutiny of anticompetitive practices facilitated by artificial intelligence (AI). The DOJ has been actively investigating RealPage, a rental property management software company, since 2022 for allegedly using AI algorithms to set rental prices above market levels. This probe is a part of the Biden administration’s broader antitrust enforcement efforts against major tech companies.
Assistant Attorney General Jonathan Kanter stated, “If your AI fixes prices, you’re just as responsible.” He emphasized that the use of AI to automate anticompetitive practices like price fixing should be subject to the same regulatory standards as human-conducted activities.
During the American Bar Association’s annual meeting on white-collar crime in March, Deputy Attorney General Lisa Monaco highlighted that misusing AI could lead to harsher penalties for both corporations and individuals. She emphasized that compliance officers should be vigilant in ensuring their companies’ AI systems do not engage in unlawful practices.
The DOJ’s focus on AI in antitrust litigation underscores the potential for stricter regulations and penalties for businesses that leverage AI for price fixing and other illegal activities.
