Category: MIL-OSI

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Acting Associate Attorney General Benjamin C. Mizer Delivers Remarks on the Justice Department’s Lawsuit Against RealPage for Algorithmic Pricing Scheme that Harms Millions of Americans

Source: United States Department of Justice Criminal Division

Remarks as Prepared for Delivery

Thank you, Deputy Attorney General Monaco.

I would like to reiterate the Attorney General’s and the Deputy Attorney General’s thanks to the leadership and staff of the Antitrust Division. They have exhibited the utmost professionalism and dedication throughout the long-running investigation that led to today’s complaint.

This civil action against RealPage exemplifies the Department’s commitment to combatting anticompetitive practices that increase the prices Americans pay on a daily basis. The complaint alleges that RealPage uses its software to collect and share landlords’ competitively sensitive information about rental prices, projected vacancies, and lease terms. The software then feeds landlords daily pricing recommendations, taking the guesswork out of understanding what competing landlords are doing. As a result, landlords can align rental prices, and tenants are limited in their ability to successfully negotiate counteroffers or seek discounts.

This type of conduct is egregious. But it is unfortunately not limited to the rental housing industry. We’ve seen unfair and illegal pricing practices in many different industries, and staff in the Antitrust Division — and the Department more broadly — are working tirelessly to combat these practices wherever they arise.

For example, the Antitrust Division is currently litigating a challenge against a company that we allege uses similar strategies to facilitate information sharing among meat processors, leading to higher prices for kitchen staples like chicken, turkey, and pork. And the Division recently shut down another information exchange that helped processors to suppress wages and benefits for employees working in poultry processing plants.

Separately, in the criminal antitrust context, we’ve worked to root out price-fixing conduct among pharmaceutical companies. Last year, we reached resolutions with two drug companies that admitted to fixing the prices of essential medicines used to lower cholesterol and treat eye and skin infections. Those resolutions required the companies to donate $50 million in drugs, pay $255 million in criminal penalties, and divest the drug product lines that were a core part of the conspiracy.                                

We’ve also seen unfair pricing practices in the transportation industry. Our Civil Division and U.S. Attorneys’ Offices have prosecuted individuals for hiking the prices of used cars by rolling back odometer readings and falsifying vehicle titles. And the Civil Division has also sued companies for forcing car buyers to pay for expensive insurance that they do not want or need.

The Department remains committed to fighting these and other unlawful pricing practices regardless of how and where they might arise. Today’s suit against RealPage reflects our continued commitment to promoting competition and advancing economic opportunity and equity.

I’ll now turn it over to Assistant Attorney General Jonathan Kanter.

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Defense News: Huntington Hall receives U.S. Navy’s first outdoor fitness pavilion

Source: United States Navy

Leadership from Naval Weapons Station Yorktown; Supervisor of Shipbuilding, Conversion and Repair-Newport News and staff from the Morale, Welfare and Recreation department convened for a ribbon cutting at the structure on Tuesday, August 15th. Also in attendance was a contingent of Sailors eager to exercise outdoors at the new pavilion.

“Our 24-hour outdoor fitness pavilion is a huge win for our junior Sailors that reside in and around Huntington Hall. The warfighters that work on the ships in the shipyard, their jobs are not easy so being able to bring this outdoor facility that they can use anytime after they get home from work, it just gives an outlet for them anytime of the day,” said Captain Dan Patrick, Commanding Officer of Naval Weapons Station Yorktown. “It took about an eight-month effort and over $325,000 was spent on this pavilion. My quality-of-service team worked hard to come up with great ideas and this is one win that we brought to fruition,” said Captain Patrick.

The pavilion itself is located behind Huntington Hall, and adjacent to the outdoor track and soccer field. The 800 square foot structure is open on all sides, incorporates solar panels and LED lights, and is hurricane resistant. An open floor plan covered with interlocking rubber tiles allows for a variety of cross fit and high intensity interval exercises. There are modular stations throughout the pavilion for pull ups, several climbing ropes, bench press stations, axle attachment points for barbel weights, and several squat rack stations. Additionally, outdoor storage cabinets hold additional workout equipment such as kettle bell sets, jump ropes, weighted workout balls, and additional attachments for bench press stations that add to the variety of exercise options that are now available for use 24/7.

After the brief ribbon cutting, Sailors eagerly converged under the pavilion to try out the new equipment. Several of them took turns climbing the 15-foot ropes and safely rappelled back down. Staff members from the MWR gym were also on hand to assist with attaching bench press attachments and barbel weights, and of course offer their guidance on proper and safe usage. Several remarked how the bright and airy pavilion was a welcome addition to the variety of workout options available inside at the gym. Others reveled eagerly at the variety of new equipment found throughout the structure.

Other quality of life enhancements at Huntington Hall include a newly refinished gym floor that has become popular for group sports sessions such as basketball tournaments, and dodgeball events among others. “The old floor was very dingy, and our court now is a lighter color, and it really brings out the space. Sailors are also excited to use the court,” said Matt Palandro, MWR Fitness Director for Huntington Hall.

There is also new furniture and room fixtures throughout every room, a host of new PlayStation 5 consoles, pool tables, lounge areas, laptops available to check out, a small movie theater, and wi-fi throughout the facility. Huntington Hall is also home to a Fleet and Family Support Center that delivers a variety of high-quality programs and classes to Sailors during the week.

In addition to the MWR gym, various recreation and liberty options offer a wealth of opportunities, including recreational trips and various events throughout each month such as resource fairs and educational fairs to name a few. An on-site Navy Exchange mini mart is also located at the facility and was one of the first in the region to transition to a cashless point of sale system. There is even a kitchen complete with stoves, ovens, kitchen appliances and cookware that gives Sailors an opportunity to cook.

The opening of the new 24/7 outdoor fitness pavilion is just one of the many quality of life enhancements situated throughout the facility. These enhancements are all geared towards supporting and enhancing the quality of life of the Sailors that reside at Huntington Hall and nearby while their respective ships are at Newport News Shipbuilding.

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Justice Department Sues RealPage for Algorithmic Pricing Scheme that Harms Millions of American Renters

Source: United States Department of Justice

The Justice Department, together with the Attorneys General of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington, filed a civil antitrust lawsuit today against RealPage Inc. for its unlawful scheme to decrease competition among landlords in apartment pricing and to monopolize the market for commercial revenue management software that landlords use to price apartments. RealPage’s alleged conduct deprives renters of the benefits of competition on apartment leasing terms and harms millions of Americans. The lawsuit was filed today in the U.S. District Court for the Middle District of North Carolina and alleges that RealPage violated Sections 1 and 2 of the Sherman Act.

The complaint alleges that RealPage contracts with competing landlords who agree to share with RealPage nonpublic, competitively sensitive information about their apartment rental rates and other lease terms to train and run RealPage’s algorithmic pricing software. This software then generates recommendations, including on apartment rental pricing and other terms, for participating landlords based on their and their rivals’ competitively sensitive information. The complaint further alleges that in a free market, these landlords would otherwise be competing independently to attract renters based on pricing, discounts, concessions, lease terms, and other dimensions of apartment leasing. RealPage also uses this scheme and its substantial data trove to maintain a monopoly in the market for commercial revenue management software. The complaint seeks to end RealPage’s illegal conduct and restore competition for the benefit of renters in states across the country.

“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” said Attorney General Merrick B. Garland. “We allege that RealPage’s pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents. Using software as the sharing mechanism does not immunize this scheme from Sherman Act liability, and the Justice Department will continue to aggressively enforce the antitrust laws and protect the American people from those who violate them.”

“Today’s complaint against RealPage illustrates our corporate enforcement strategy in action. We identify the most serious wrongdoers, whether individuals or companies, and focus our full energy on holding them accountable,” said Deputy Attorney General Lisa Monaco. “By feeding sensitive data into a sophisticated algorithm powered by artificial intelligence, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices — undermining competition and fairness for consumers in the process. Training a machine to break the law is still breaking the law. Today’s action makes clear that we will use all our legal tools to ensure accountability for technology-fueled anticompetitive conduct.” 

“RealPage’s egregious, anticompetitive conduct allows landlords to undermine fair pricing and limit housing options while stifling necessary competition,” said Acting Associate Attorney General Benjamin C. Mizer. “The Department remains committed to rooting out illegal schemes and practices aimed at empowering corporate interests at the expense of consumers.” 

“As Americans struggle to afford housing, RealPage is making it easier for landlords to coordinate to increase rents,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today, we filed an antitrust suit against RealPage to make housing more affordable for millions of people across the country. Competition – not RealPage – should determine what Americans pay to rent their homes.”

The complaint cites internal documents and sworn testimony from RealPage and commercial landlords that make plain RealPage’s and landlords’ objective to maximize rental pricing and profitability at the expense of renters. For example:

  • RealPage acknowledged that its software is aimed at maximizing prices for landlords, referring to its products as “driving every possible opportunity to increase price,” “avoid[ing] the race to the bottom in down markets,” and “a rising tide raises all ships.”
  • A RealPage executive observed that its products help landlords avoid competing on the merits, noting that “there is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down.”
  • A RealPage executive explained to a landlord that using competitor data can help identify situations where the landlord “may have a $50 increase instead of a $10 increase for the day.”
  • Another landlord commented about RealPage’s product, “I always liked this product because your algorithm uses proprietary data from other subscribers to suggest rents and term. That’s classic price fixing…”

The complaint alleges that RealPage’s agreements and conduct harm the competitive process in local rental markets for multi-family dwellings across the United States. Armed with competing landlords’ data, RealPage also encourages loyalty to the algorithm’s recommendations through, among other measures, “auto accept” functionality and pricing advisors who monitor landlords’ compliance. As a result, RealPage’s software tends to maximize price increases, minimize price decreases, and maximize landlords’ pricing power. RealPage also trained landlords to limit concessions (e.g., free month(s) of rent) and other discounts to renters. The complaint also cites internal documents from RealPage and landlords touting the fact that landlords have responded by reducing renter concessions.

The complaint separately alleges that RealPage has unlawfully maintained its monopoly over commercial revenue management software for multi-family dwellings in the United States, in which RealPage commands approximately 80% market share. Landlords agree to share their competitively sensitive data with RealPage in return for pricing recommendations and decisions that are the result of combining and analyzing competitors’ sensitive data. This creates a self-reinforcing feedback loop that strengthens RealPage’s grip on the market and makes it harder for honest businesses to compete on the merits.

RealPage Inc., is a property management software company headquartered in Richardson, Texas.

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Defense News: HM-15 Holds Change of Command Ceremony, Welcomes New Commanding Officer

Source: United States Navy

 

The ceremony was held as a rite of passage to signify a change of commanders. Cmdr. Andrew Countiss, a native of Severna Park, Maryland, served as commanding officer and executive officer for HM-15 from January 2022 to August 2024, and was relieved by Cmdr. Jared Schmitt, a native of Doylestown, Pennsylvania.

While in command, Countiss was the recipient of the 2023 Naval Helicopter Association Rear Adm. Tomaszeski Commanding Officer leadership award. Additionally, during his command tour, HM-15 won the 2023 Battle Efficiency Award under his leadership.

Countiss was the architect of a HM-14 and HM-15 squadron merger. As a result, he commanded the largest operational squadron in the Navy with more than 825 active duty/Navy Training and Administration of the Reserves personnel, 125 Selected Reservists and 18 MH-53E helicopters. 

“It was the professional honor of a lifetime to lead HM-15 through a season of unprecedented growth, transformation, and operational execution,” Countiss said. “The Blackhawk Sailors represent the finest our great nation has to offer. Their spirit and dedication were endless sources of inspiration for me. They forged the strongest team in the Fleet – there was never an ask or task too large for them.”

A 2006 graduate of the United States Naval Academy, he was designated a naval aviator in May 2008. Upon completion of flight school, he received orders to the Airborne Mine Countermeasures Weapon Systems Training School (AWSTS) for training in the MH-53E Sea Dragon.

Some of the high-level support Countiss oversaw while in command of HM-15 include providing mission critical logistics capability during Operation Prosperity Guardian in the Gulf of Aden. In addition, HM-15 provided support to White House tasking for a President of the United States supplementing Marine Helicopter Squadron One; and serving as the host squadron during President Joe Biden and First Lady Jill Biden’s visit to Naval Station Norfolk in November 2023.

“It was a great privilege to serve with them and they are in fantastic hands moving forward with Cmdr. Jared Schmitt as commanding officer,” Countiss said.

Schmitt thanked Countiss for his leadership and guidance as he assumes command of the last operational MH-53E squadron in the U.S. Navy.  

“Andrew, thank you for your guidance, wisdom, support and most importantly your friendship,” Schmitt said.

Schmitt further discussed the rich legacy of the MH-53E community, “Once a Blackhawk, always a Blackhawk.”

“Embrace our legacy,” Schmitt added. “We are some of the last men and women who get to serve in this squadron and this community – a community that has been in existence since 1971 and a squadron that was commissioned in 1987. It is a legacy we can all be proud of and a legacy we have the responsibility of seeing through to the finish line and honor those who came before us.”

Schmitt, a 2007 graduate from the United States Naval Academy; was designated as a naval aviator in February 2009. After flight school, he reported to AWSTS for training in the MH-53E Sea Dragon. Schmitt mentioned serving alongside his younger brother, Lt. Cmdr. Keith Schmitt, who has been in the MH-53E community since 2013. 

“Keith, I still can’t believe we ended up in this together,” Schmitt said. “From little kids playing with Hot Wheels cars and throwing the football in the backyard, to big kids flying in the 53, it has been so cool to share this experience with you.” 

The Navy has planned a gradual transition of the MH-53E community to ensure operational readiness is maintained throughout the phasing out process. The ultimate retirement of the MH-53E Sea Dragon aligns with the Navy’s long-term strategy to modernize its fleet and enhance operational capabilities. By phasing out older platforms, the Navy can allocate resources to developing and deploying more advanced technologies that meet operational demands.

HM-15 is the largest helicopter squadron in the Navy with nearly 825 Active Duty/Training and Administration of the Reserves personnel, 125 Selected Reservists, and 18 MH-53E helicopters. Their mission is to maintain a worldwide 72-hour Airborne Mine Countermeasures (AMCM) rapid deployment posture and a forward-deployed AMCM and Vertical Onboard Delivery (VOD) capability in both the Arabian Gulf and Seventh Fleet AOR.
 
 
 
 

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Defense News: U.S. and Italian Naval Forces Conduct Bilateral Operations

Source: United States Navy

Participants included the U.S. Navy Arleigh Burke-class guided-missile destroyer USS Dewey (DDG 105), the flagship of the Italian navy aircraft carrier ITS Cavour (CVH 550), and the Italian Navy Carlo Bergamini-class frigate ITS Alpino (F 594).

“The multilateral operations we conduct with our allies and partners in this theater are strengthening our capabilities and keeping our skillsets sharp,” said Vice Adm. Fred Kacher, commander, U.S. 7th Fleet. “As we recently demonstrated with the Abraham Lincoln Carrier Strike Group and Italy’s Cavour Carrier Strike Group, both our nations recognize the importance of a free and open Indo-Pacific and the role our navies play in preserving the peace and stability here.”

The two navies conducted fixed-wing air defense training and combined anti-submarine warfare exercises, as well as subject matter expert exchanges across the participating ships.

“We are ready and very well prepared to operate with our allies in every part of the globe; we are used to this, since we share common tactics, procedures and command, control and communication systems” said Rear Admiral Giancarlo Ciappina, commander Italian Carrier Strike Group on board ITS Cavour.

In addition to cross-functional training across multiple domains, the U.S. and Italian navy vessels also conducted formation exercises and communication drills, events tailored to build understanding and trust when conducting high-end maneuvers.

“Any time we have an opportunity to train together with our partners and allies, it goes a long way in enhancing our ability to exchange information and operate cohesively,” said Cmdr. Nicholas Maruca, Dewey’s commanding officer.

The U.S. Navy regularly operates alongside our allies in the Indo-Pacific region as a demonstration of our shared commitment to the rules-based international order. Bilateral operations such as this one provides valuable opportunities to train, exercise and develop tactical interoperability across allied navies in the Indo-Pacific.

“The activity with USS Dewey is an outstanding training opportunity for our crews. Another great demonstration of fruitful interactions and cooperation between Italian and US ships at sea,” said Ciappina. “I should say, a normal interoperability rehearsal which keeps up our standards and ability to work together. Conducting this type of activity is one of the strategic objectives of our operational campaign, ensuring security at sea and promoting economic prosperity through the Indo-Pacific region”.

Dewey is forward-deployed and assigned to Destroyer Squadron (DESRON) 15, the Navy’s largest DESRON and the U.S. 7th Fleet’s principal surface force.

U.S. 7th Fleet is the U.S. Navy’s largest forward-deployed numbered fleet, and routinely interacts and operates with allies and partners in preserving a free and open Indo-Pacific region.