The Department of Justice and eight state attorneys general filed a civil antitrust lawsuit in August against RealPage Inc. – a Texas-based software company that provides property management software – and several landlords using its software. This case adds to the growing number of antitrust cases targeting algorithmic pricing tools, and is another example of federal regulators taking a tough stance on new AI technologies.
Antitrust
Long-Awaited Revisions to HSR Reporting Rules Set to Take Effect This January
The Federal Trade Commission (“FTC”) has announced a final rulemaking on a unanimous vote that will expand the reporting requirements for mergers and acquisitions under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). The new reporting requirements will go into effect after the new year in mid-January 2025. No changes will be made to the scope of transactions that are subject to HSR reporting.
For All Intents and Purposes the Ninth Circuit Shakes Up Antitrust Law With Sidibe v. Sutter Decision
The June 4, 2024 Ninth Circuit Court of Appeals decision in Sidibe v. Sutter Health marks a potential shift in how rule of reason antitrust cases are approached and adjudicated. The opinion underscores the significance of historical evidence in antitrust trials and places considerable emphasis on analyzing the purpose behind challenged conduct.
The App Store Wars: An “Epic” Loss for Google Takes Shape
Although Google fought tooth and nail against it, a win for an underdog video game developer means the Google Play Store could likely soon look a lot different for Android users. Google met its match in December when Epic Games, the creator of the hit video game Fortnite, won on all counts in its antitrust suit against the tech titan. However, the fight is far from over: the court is currently determining what exactly the Google Play Store will look like in the future and heard arguments last week over Epic’s proposed injunction. As Judge Donato of the Northern District of California put it during the hearing, despite Google’s argument that “there’s a terrifying world of chaos and energy that’s just around the corner if there’s competition in the app store market,” the judge “just [doesn’t] buy it.” On the other hand, he said Epic’s proposed injunction – which would bar Google from enforcing “contractual provisions, guidelines or policies, or otherwise imposing technical restrictions, usage frictions, financial terms or in-kind benefits that … restrict, prohibit, impede, disincentivize or deter the distribution of Android apps through an Android app distribution channel other than the Google Play Store” – was “too open-ended.” Proceedings continue in August, and the parties will have opportunity for closing arguments. In the meantime, we revisit the implications and the stakes of the case, beyond just Google and its Play Store.
President Biden Announces New Price Fixing “Strike Force”: Government Continues Antitrust Crusade
Earlier this month, President Biden announced the formation of a “Strike Force on Unfair and Illegal Pricing.” This strike force will be an interagency group co-chaired by the FTC and DOJ. President Biden stated the group will focus on industries including “prescription drugs, health care, food and grocery, housing, [and] financial services.” While the exact makeup of the strike force is not clear, it has been reported that FTC Chair Lina Khan and Jonathan Kanter, Assistant Attorney General in the DOJ’s Antitrust Division, will co-chair it.
FTC and DOJ Clarify Preservation Obligations for Instant Messaging Platforms
The Federal Trade Commission’s Bureau of Competition and the Department of Justice Antitrust Division released a joint statement reiterating document preservation obligations for companies and individuals that are the subject of government investigations and litigations, emphasizing messaging platforms, such as Slack and Google Chats, that automatically delete communications. Both agencies announced updated language in their standard preservation letters, specifications for “second requests” used in pre-merger review under the Hart-Scott-Rodino Act, voluntary access letters, and grand jury subpoenas, to address these instant messaging platforms. The agencies emphasized that companies’ obligation to preserve information on such platforms is nothing new, explaining their clarification is to prevent companies from feigning ignorance if communications are not preserved after preservation obligations are triggered.
Legislating Around AI-Driven Algorithm Concerns
Pricing algorithms are nothing new. They are, generally speaking, computer programs intended to help sellers optimize prices in real time, or close to it. These programs can use data on demand, costs, or even competitors’ prices to “learn” to set the prices of products. What is new is the proliferation of these programs across industries and the emergence of artificial intelligence-driven pricing algorithms.
FTC Announces 2024 Thresholds Under HSR Act and Clayton Act
The Federal Trade Commission has announced revisions to HSR Act and Clayton Act Section 8 thresholds, which are indexed annually in alignment with prior year economic activity. The article identifies the adjustments that are likely to be the most relevant to our clients and reiterates several important practice tips.
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