DOJ sues makers of app driving rent hikes – National & International News – FRI 23Aug2024

DOJ announces antitrust suit against app driving rent hikes.

RFK Jr. ends 2024 bid, backs Trump.

Former FL deputy charged in killing of Black airman.

Canadian rail strike partially ended after government steps in.

NATIONAL NEWS

RFK Jr. has ended his independent presidential bid and endorsed Trump

Influential independent candidate Robert F. Kennedy, Jr., has announced that he is ending his 2024 presidential campaign and will endorse Donald Trump. Running mate Nicole Shanahan announced on a podcast earlier this week that they were considering this option. Kennedy is seeking a role in Trump’s administration, apparently seeking the position of Secretary of Health and Human Services. Kennedy came to prominence a few years ago as a vaccine skeptic and conspiracist. He has tried to distance himself somewhat from the anti-vaxx label, but a recent conversation between himself and Trump shows these are views he still very much holds. 

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DOJ announces antitrust suit against app driving rent hikes

The Department of Justice as well as attorneys general in eight states (California, Colorado, Connecticut, Minnesota, North Carolina, Oregon, Tennessee and Washington) have filed an antitrust action against the software company that distributes the RealPage app. Prosecutors allege that RealPage has colluded with landlords across the country to drive up prices on millions of rental units. Landlords submit non-publicly available pricing information to the app, which the app’s algorithm uses to suggest prices that will maximize profits. By doing this, the app allows increasingly monopolistic landlords to avoid having to compete to attract renters by keeping rent prices reasonable.

The suit follows a years-long investigation in which data scientists studied the algorithm’s code to determine how it fixes prices. It’s not clear what remedy DOJ is ultimately seeking should they win the suit (which could take years), but they are seeking an immediate order to prevent RealPage from continuing to collude with landlords.

Apps such as these have been used in other industries to circumvent competitive forces and drive up prices for consumers. For example, the DOJ also took action against Agri Stats, which is used by major meat processing companies to simultaneously minimize prices paid to produces and maximize retail prices. 

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2022 ProPublica story on RealPage.

Former Florida deputy charged in killing of Black airman

In May, Senior Airman Roger Fortson, 23, was sitting in his apartment in Fort Walton Beach, FL, and speaking to his girlfriend on Facetime. According to the girlfriend, there was a loud banging on the door. Fortson called out “Who is it?” and heard no reply. He got up and armed himself with a legally-owned handgun before answering the door. When Fortson went to the door, bodycam video shows that Fortson was holding the gun down at his side and did not point it at anyone. Nevertheless, Okaloosa County Sheriff’s Deputy Eddie Duran opened fire on Fortson at close range, hitting him six times. Fortson later died at the hospital.

It later emerged that the deputies were responding to a call about a domestic dispute. The caller was unsure what apartment the dispute was taking place in but pointed them to Fortson’s apartment. Fortson was alone in his apartment.

Over a month after the May 3 incident, Duran was fired from the Sheriff’s Department. Duran had claimed he fired in self-defense, but an internal investigation found Duran’s use of force was “not objectively reasonable”. Fortson’s Georgia-based family, with the assistance of civil rights attorney Ben Crump, have called for months for Duran to be criminally charged.

Today, the Florida State Attorney General’s office announced a charge of manslaughter with a firearm against Duran. He faces up to 30 years in prison if convicted. As of the latest reporting, Duran is not yet in custody.

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INTERNATIONAL NEWS

Canadian rail strike partially ended after government steps in

Less than 24 hours after going on strike, workers at one of Canada’s largest rail companies, Canadian National Railway (CN), are returning to work. Canadian Pacific Kansas City (CPKC), the other large rail company whose workers went on strike, are also expected to return to work soon.  

Picket lines shut down after Canada’s labor minister called on the federal industrial relations board to impose binding arbitration on the parties. This action was a departure from the government’s previous position, with Prime Minister Justin Trudeau said he preferred the dispute to be settled at the bargaining table. Since the companies and the Teamsters Union reached an impasse after months of negotiation, the government will now enforce the expired contract until a new one is agreed. 

After a full stoppage, brief thought it was, it will take a few days for each company to be fully operational and a week or more to catch up on shipments. Even this disruption is likely to have some knock-on effects on supply chains and numerous industries both in the US and Canada. 

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